Adidas warned that it may raise prices in the US following the Trump administration’s new import tariffs. The company anticipates a €200 million ($231 million) hit in the second half of 2025. Trump Tariffs on footwear imports from Vietnam rose from 26% to 46%, and from Indonesia, 24% to 43%. These two nations produce more than 50% of Adidas' US-sold products. Thus, the price hike severely affects Adidas’ cost base.
The global sportswear and lifestyle company reported €546 million ($631 million) in operating profit in its earning report, above analyst expectations of €520 million ($602 million). However, sales rose just 2.2% to €5.95 billion ( approximately $6.87 billion), missing forecasts of €6.2 billion ($7.16 billion). The gap can be largely attributed to weak performance in Western markets. Adidas stock fell more than 7% in response to the news. The market responded negatively to the company’s vague guidance and inflationary pressures from new duties.
To prepare for rising costs, the company has been accelerating shipments to the US. This strategy led to a 16% jump in inventory, now standing at €5.26 billion ( approximately $6.08 billion). The move mirrors similar steps taken by competitors like Puma.
The US remains Adidas’ second-largest market, contributing roughly 20% of global sales. CEO Bjorn Gulden emphasized that while price hikes may hit new models, the company will try to hold prices on popular existing products.
Adidas continues to expand its lifestyle line with refreshed versions of its Samba and SL72 sneakers. The company also teased a new collection in collaboration with British rock band Oasis, aiming to maintain cultural relevance and demand. This strategy may help the company bridge the gap between high tariff costs and profits with an increased sales volume. Whether it works or not remains to be seen.
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