Adidas forecasts a €120 million cost from Trump’s US tariffs, with North American sales falling 5% in Q3 and uncertainty over consumer price reactions.
FRANKFURT: German sportswear giant Adidas expects US President Donald Trump’s tariff measures to cost it approximately €120 million this year.
Adidas CEO Bjorn Gulden confirmed the figure during an analyst call, stating that “most of the impact” would occur in the final months of 2025.
Over 90% of Adidas’s production last year originated in Asia, making shipments to the United States subject to significant import levies.
North America represented more than 20% of Adidas’s total sales in the previous year.
Although the €120 million estimate is lower than the €200 million warning issued in July, Gulden noted difficulty assessing the “indirect impact” of tariffs as prices increase.
“We don’t know how the consumer will react in the US when these higher prices come into effect,” he said.
Overall North American sales declined 5% in the third quarter to €1.3 billion, affected by both tariffs and the discontinuation of the Yeezy sneaker line.
The Yeezy collaboration with rapper Ye, formerly Kanye West, was terminated following his antisemitic remarks on social media.
Gulden revealed Adidas is making substantial investments in US college sports to narrow the gap with industry leader Nike.
“The distance to Nike in the US is so big that we cannot have the ambition of being number one,” he stated.
“But we should have the ambition to double our business,” he added without providing a specific timeline.
Earlier this month, Adidas raised its full-year core profit forecast to €2 billion, up from previous guidance of €1.7 to €1.8 billion. – AFP
