Adidas has revealed significant financial pressures stemming from U.S. tariffs, though the company stopped short of confirming whether consumers will bear the brunt of rising costs. The German sportswear giant disclosed on Wednesday that trade policies introduced by the Trump administration led to a “double-digit million euro” impact on its second-quarter earnings between April and June. While specific figures remain undisclosed, the tariffs are projected to add approximately €200 million ($230 million) to the company’s expenses in the latter half of 2024.
Despite the trade headwinds, Adidas reported a striking 90% year-on-year surge in second-quarter net profit, reaching €369 million, bolstered by robust sales of its sports and lifestyle products. Revenue climbed 2% to €5.9 billion, slightly exceeding market expectations. CEO Bjørn Gulden described the start of the year as “positive” but emphasized caution amid ongoing economic unpredictability. “Under normal circumstances, these results would make us bullish,” Gulden noted. “But global volatility and unresolved U.S. tariff decisions require prudence.”
The company maintained its 2025 operating profit forecast of €1.7 billion to €1.8 billion, though it warned of a “range of possible outcomes” tied to unresolved trade policies. Gulden expressed concern that broader inflationary pressures from tariffs could indirectly weaken consumer demand. “We don’t yet know how these costs might ripple through the economy,” he said, highlighting the challenge of balancing pricing strategies with market stability.
Adidas’s supply chain, which relies heavily on manufacturing hubs in tariff-affected countries like Vietnam and Indonesia, adds complexity to its financial outlook. Recent U.S. tariffs, part of broader trade measures targeting multiple nations and sectors, have heightened operational costs. The company’s recovery under Gulden’s leadership stands in contrast to setbacks in 2022, when it severed ties with rapper Ye (formerly Kanye West) following antisemitic remarks, derailing their collaborative sneaker line. A renewed focus on classic footwear has since helped stabilize the brand.
Analysts suggest Adidas’s cautious optimism reflects broader industry anxieties over escalating trade tensions. While tariffs have yet to visibly dent consumer purchases, the potential for price hikes looms as companies weigh absorbing costs against protecting margins. For now, Adidas has opted to hold its financial guidance, signaling resilience but acknowledging the fragile balance between strong performance and geopolitical uncertainty.
The impact of U.S. trade policy remains a critical variable, not only for Adidas but for multinational corporations navigating intertwined global markets. As the second-largest sportswear manufacturer, the company’s trajectory offers a barometer for how tariff pressures may reshape pricing, production, and consumer behavior in the months ahead.
