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Adidas warns of significant tariff costs

The company predicts 200 million euros in additional costs from U.S. tariffs this year.

July 30, 2025 at 07:13 AM

Adidas has reported a potential 200 million euro increase in costs due to U.S. tariffs.

Adidas faces challenges from U.S. tariff costs

Adidas shared that its shares dropped 9.1% after announcing a potential financial hit from U.S. tariffs. The German sportswear company expects that the added costs from tariffs could reach 200 million euros in the latter half of the year, impacting the prices of its U.S. goods. Despite this, Adidas maintains its yearly sales guidance, although there is noted uncertainty regarding consumer demand and inflation. The second-quarter sales rose by 2%, totaling 5.95 billion euros, despite a negative currency impact.

Key Takeaways

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Adidas predicts 200 million euro cost from U.S. tariffs.

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Shares fell 9.1% following the tariff news.

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Potential inflation could affect consumer demand.

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The company reported a 2% increase in total revenue for Q2.

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Operating profit rose 58% but still missed some forecasts.

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U.S. market is showing the lowest sales growth for Adidas.

"We do also not know what the indirect impact on consumer demand will be should all these tariffs cause major inflation."

CEO Bjørn Gulden emphasizes the uncertainty surrounding consumer behavior due to inflation from tariff impacts.

"Shares were down 9.1% by 8:40 a.m. London time."

The significant drop in shares indicates investor concern over Adidas' financial outlook amid tariff increases.

"Current import levies will push up the cost of its U.S. goods."

This statement reflects the direct financial impact of U.S. tariffs on Adidas' operations in North America.

"Adidas expects full-year currency-neutral sales to increase at the high-single digit rate."

Despite tariff challenges, the company remains optimistic about its annual sales growth.

Adidas is now navigating the tricky waters between maintaining profitability and facing significant cost hikes. The anticipated 200 million euros from tariffs underscores how global trade policies can deeply affect even established companies. With the U.S. market showing the weakest growth and rising inflation concerns, Adidas may have to reassess its strategies to attract consumers. As CEO Bjørn Gulden pointed out, the indirect effects of these tariffs could alter consumer behavior and impact overall demand for their products.

Highlights

Adidas faces a tough challenge from rising U.S. tariffs.
Tariffs could cost Adidas 200 million euros in six months.
Inflation concerns may alter consumer demand for Adidas products.
CEO highlights uncertainty in consumer behavior due to tariffs.

Potential risks from U.S. tariffs and inflation concerns

Adidas may face backlash if rising inflation impacts consumer spending. The high costs associated with tariffs could lead to reduced demand and financial instability for the brand.

Future strategies will be critical for Adidas to weather these economic challenges.

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adidas tariffs financial retail investors business economy retail

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