Adidas sneakers are displayed at a DSW retailer on January 31, 2024 in Novato, California.
Justin Sullivan | Getty Photos
Shares of Adidas fell Wednesday after the German sportswear big flagged a double-digit million euro hit from U.S. tariffs within the second quarter and warned that present import levies will push up the price of its U.S. items.
The world’s second-largest sports activities retailer mentioned that added prices related to tariffs may complete 200 million euros ($231 million) within the second half of this yr.
Shares have been down 9.1% by 8:40 a.m. London time (3:40 a.m. ET).
The corporate additionally flagged potential dangers to client demand ought to U.S. tariffs set off a surge in inflation.
“We do additionally not know what the oblique impression on client demand shall be ought to all these tariffs trigger main inflation,” CEO Bjørn Gulden mentioned.
The corporate however maintained its full-year steering, however famous this might change because it cited “elevated uncertainty attributable to U.S. tariffs and macroeconomic dangers.”
It at the moment expects full-year currency-neutral gross sales to extend on the high-single digit fee and working revenue to rise to between 1.7 billion euros and 1.8 billion euros.
It comes because the sports activities retailer posted an uptick in second-quarter gross sales, with the U.S. seeing the softest gross sales development.
Revenues rose 2% year-on-year within the three months to June 30 to five.95 billion euros, the corporate mentioned flagging a unfavorable foreign money impression of 300 million euros. LSEG analysts had forecast gross sales of 6.23 billion euros.
Working revenue rose 58% yearly within the quarter 546 million euros versus the 518 million euros forecast.
