Adidas Faces U.S. Tariff Challenges, Eyes Potential Price Hikes
Adidas, the sportswear brand, may increase prices in the U.S. due to tariffs, impacting costs by €200 million. Despite a 2.2% sales growth, shares dropped amid fears of losing sales momentum. CEO Bjorn Gulden emphasized the U.S. market's importance, despite challenges from tariffs and currency shifts.
Adidas, one of the leading sportswear brands, announced it might have to consider increasing prices in the United States following President Donald Trump's tariff policies, which could add approximately €200 million ($231 million) to its costs in the latter half of the year. This revelation comes as Adidas shares plummeted over 7%, amounting to a 23% loss since the year's start.
The firm's CEO, Bjorn Gulden, expressed uncertainty about the final shape of U.S. tariffs and their potential indirect effects on consumer demand, which has restrained Adidas from upping its annual financial guidance. He highlighted the complexities of setting new prices amidst fluctuating policies and economic factors.
Despite the 2.2% increase in sales during the last quarter, falling short of analysts' €6.2 billion expectations, there is growing concern that Adidas may be losing its recent sales momentum. With new tariffs from Vietnam and Indonesia, cost structures have increased, prompting strategic shipping decisions and ongoing commitments to expand within the crucial U.S. marketplace.
(With inputs from agencies.)
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