Adidas said on Wednesday higher US tariffs would add around 200 million euros ($231 million) to its costs in the second half, having impacted its second quarter results by “double-digit” millions of euros.
Highlighting the impact of U.S. President Donald Trump’s volatile trade policies, Adidas said uncertainty was holding it back from increasing its annual guidance despite reporting stronger than expected second-quarter profit.
“We still do not know what the final tariffs in the U.S. will be,” CEO Bjorn Gulden said in a statement. Another unknown is the indirect impact on consumer demand if the tariffs cause “major inflation”, he added.
Shares in Adidas were down 2.6% in premarket trade.
The stock is already down 16% since the start of the year.
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The U.S. earlier this month announced a 20% levy on many Vietnamese exports and a 19% tariff on goods from Indonesia.
Vietnam and Indonesia, Adidas’ two biggest sourcing countries, made up 27% and 19% of the company’s products respectively as of 2024.
Like many other sportswear companies including Puma , Adidas has frontloaded product purchases into the U.S. to try and beat tariffs, driving its inventories up 16% to 5.26 billion euros at the end of June.
Net sales, adjusted for currency swings, rose 2.2% to 5.95 billion euros ($6.9 billion) in the quarter, lower than analysts’ average estimate of 6.2 billion euros, according to data compiled by LSEG.
But quarterly operating profit reached 546 million euros, ahead of analysts’ expectations for 520 million euros, a sign that Adidas is selling more products at full price.
Adidas’ gross margin increased by 0.9 percentage points to 51.7% in the quarter, as reduced discounting and lower product and freight costs mitigated the impacts from currencies and tariffs.
Adidas is also having to contend with a stronger euro and weaker dollar, which hit sales by around 300 million euros in the quarter through June.
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