Adidas has warned that new U.S. tariffs introduced by the Trump administration will likely lead to increased prices for popular trainers such as the Samba and Gazelle.
CEO Bjørn Gulden explained that the German sportswear company relies heavily on manufacturing in countries like China and Vietnam, and cannot currently produce most of its products in the U.S. due to a lack of specialized equipment and skilled labor. Despite having reduced exports from China, A
Adidas remains affected by high tariffs, which could lead to increased costs not just for their products but across the sector. Gulden noted that the uncertainty caused by U.S. trade policy has prevented Adidas from upgrading its full-year revenue and profit forecasts, despite a strong first quarter.
The company reported a near doubling of operating profit to €610 million and strong global sales, except in the U.S. where the end of its Yeezy partnership continues to impact revenue. Nevertheless, Adidas shares have remained relatively stable, outperforming rivals Puma and Nike over the past year.
via FT