Adidas Navigates Tariff Challenges While Maintaining Growth Expectations

Adidas Forecasts Financial Impact from Tariffs While Maintaining Growth Outlook In response to the ongoing tariffs, Adidas is preparing for a significant cost impact, projecting a loss of 200 million euros (approximately $230 million) in the latter half of the year. This announcement came on Wednesday as the company highlighted its ongoing revenue trends despite these external challenges. During the second quarter, Adidas reported a revenue increase of 2%, totaling approximately 6 million euros. The company attributed the slowed growth to the strength of the euro, but in currency-neutral terms, sales rose by 12% when excluding Yeezy sales, and 8% including them. Notably, despite these tariff-related challenges, Adidas has maintained its optimistic annual growth forecast, aiming for double-digit growth when excluding Yeezy products, and high-single-digit growth when including them. Adidas CEO Bjørn Gulden acknowledged the volatility brought on by the tariffs, stating that “the range of possible outcomes remains increased.” He emphasized that the company will not apply U.S. price increases globally and intends to collaborate with suppliers and retailers to manage costs. Adidas plans to introduce higher-priced new products as a strategic move to offset tariff impacts while keeping the sales volume steady. While competitors like Nike and Puma have been facing sales declines, Adidas has decided to increase its marketing investments and is not currently canceling any orders. “We have not canceled one order,” Gulden commented, noting the stability they are maintaining amidst a challenging market environment. Gulden also highlighted shifting preferences in consumer fashion, predicting that low-profile footwear trends will grow stronger in 2026. The company is dedicated to relaunching its iconic Superstar shoe, which is expected to drive consumer interest. Moreover, Adidas is scoring well in its apparel segment, achieving a 17% increase in currency-neutral sales during Q2. GlobalData apparel analyst Tom Ljubojevic commented that while overall sales growth might seem to be slowing, the demand among consumers remains robust, particularly in performance running and lifestyle footwear lines. “Adidas is still seeing gains in lifestyle footwear, with its Originals lines experiencing high demand,” Ljubojevic stated. Finally, Adidas is ramping up its local strategies in the U.S. to boost its presence in college sports and leverage trends in local sports. Gulden pointed out that the local team has made significant strides in signing American athletes, which aligns with their growth strategies for the upcoming seasons.