Adidas shoes are displayed at a DSW store on 31 January 2024 in Novato, California.
Justin Sullivan | Getty images
Share of Adidas The German sportswear veteran fell on Wednesday after a double -digit hit of a dual -digit euro in the second quarter from the US tariff and warned that the current imports would increase the cost of their American goods.
The world’s second largest sports retailer said the cost of tariffs could be a total of 200 million euros ($ 231 million) in the second half of this year.
“The price rises, if any, will be in the US only,” CEO Byorn Gulden told reporters during an earning call.
The shares were reduced by 7.4% at 11:35 am (6:35 AM ET) at 7.4% before damaging the loss of more than 9% in early trade.
Adidas said that it had not yet implemented any price hike in response to the tariff, but instead retain its sourcing mix.
Gulden stated that the management would review a pricing when the final rate of US tariffs on global imports or around August 1 is confirmed.
“What we can say is that we will not be a price leader. We will slowly move forward and see what is happening in the market,” he said.
Meanwhile, the company has green to the potential widespread risks for consumer demand, we should increase the inflation to tariffs.
“Tariffs, and especially uncertainty, now make things difficult. For Adidas, it is about maneuver because we can do the best without harming the business for a long time,” Gulden said.
“We do not even know what indirect impact on consumer demand will be the cause of huge inflation,” Gulden said in a statement with his income update.
Adidas still maintained his full-year guidance, but noted that it could change because it “increases uncertainty due to American tariffs and macroeconomic risks.”
Currently it is expected to fully expect currency-focused sale that there will be an increase between 1.7 billion euros and 1.8 billion euros to increase the rate of high-assignment and operating profit.
This comes when the sports retailer posted the weakened-to-first second quarter sales, which saw an increase in the US’s most soft sales.
The revenue rose 2% year-on-year in three months to 5.95 billion euros from June 30, stating that the 300 million euro’s negative currency effects flagged. LSE analysts sold 6.23 billion euros in sales.
The operational profit increased by 58% annually in the forecast of 546 million Euro vs 518 million euros.
