Adidas Suffering Blow as US Tariffs Storm
Adidas Faces Significant Costs from US Tariffs in Q2
Adidas disclosed that the tariffs introduced by former President Donald Trump had a negative impact amounting to double-digit millions of euros between April and June, though the exact figure was not specified.
Anticipated Half‑Year Cost Increase
Projections indicate that the tariffs will add roughly 200 million euros (about $230 million) to the company’s expenses for the second half of the year.
Impact on Consumers and Demand Concerns
- Adidas has not confirmed whether these additional costs will be passed on to consumers.
- CEO Bjorn Gulden expressed that rising inflation may dampen overall demand.
- “We do not know the indirect impact on consumer demand should these tariffs cause major inflation,” he said.
Positive First Quarter Performance
Despite the tariffs, the start of the year was promising, with a 90% increase in second‑quarter profits driven by strong sales of sports and lifestyle products.
Gulden noted that under normal circumstances the company would be bullish, but the current volatility and uncertainty discourage such optimism.
Outlook for 2025
- Adidas intends to maintain the operating profit forecast made earlier in 2025: a range between 1.7 billion and 1.8 billion euros.
- It warned of a range of possible outcomes, presenting the possibility that results could exceed expectations or fall short due to US trade turmoil.
Second‑Quarter Net Profit and Sales Figures
- Net profit per shareholder: 369 million euros, up from 190 million euros a year earlier, slightly above analyst forecasts.
- Sales: grew by about 2% to 5.9 billion euros.
Recent Challenges and Strategic Focus
Adidas encountered difficulties after the collapse of its partnership with US rapper Kanye West in 2022, following his antisemitic remarks.
Under the leadership of Bjorn Gulden, the company has strengthened its emphasis on classic trainers, turning a corner in performance.
Scope of US Tariffs
Trump’s tariffs cover almost all US trading partners and target specific sectors. Adidas’s global supply chain, with manufacturing in Vietnam and Indonesia, is affected by these tariffs.
