Adidas Hesitates on 2025 Forecasts Amid Tariff Uncertainty

Despite robust first-quarter performance, German sportswear giant Adidas refrained from increasing its 2025 financial projections on Tuesday, citing ambiguity surrounding potential U.S. import duties as a significant impediment to accurate forecasting and strategic planning.

CEO Bjorn Gulden stated that under normal circumstances, the company would have elevated its revenue and profit outlook following the previous week’s quarterly results. However, the uncertainty surrounding tariffs has made it impossible to do so.

Adidas anticipates that a widespread increase in U.S. tariffs will ultimately lead to higher prices across its entire product range. The company noted that it’s currently impossible to accurately quantify the increases or determine the potential effect on consumer demand in the U.S., showcasing the disruption caused by trade uncertainty.

While Adidas has already minimized its exports of Chinese-made products to the U.S., it remains “somewhat vulnerable” to substantially higher U.S. tariffs on goods from China, according to Gulden. However, it is still unknown how long the tariffs will remain at their current level.

Gulden commented, “Due to the ambiguity surrounding ongoing negotiations between the U.S. and various exporting nations, the final tariff amounts remain unknown. As a result, we are unable to make any definitive decisions regarding our next steps.”

Unexpectedly elevated U.S. tariffs on Southeast Asian nations, including Vietnam and Indonesia, were declared at the beginning of the month but suspended until July. These tariffs caught sportswear companies off guard, given that the majority of their footwear and apparel is produced in these nations.

As tariffs increase the expense of conducting business, Adidas stated that it would strive to guarantee that U.S. retail partners and consumers receive products “at the best possible price.” The company added that it would attempt to offset uncertainty in the U.S. by enhancing its performance in other global markets.

First-quarter sales surged by 14% in Europe and 13% in Greater China, with a 26% increase in Latin America. However, sales in North America saw a modest rise of only 3%, which Adidas attributed to the discontinuation of its Yeezy sneaker line.

While maintaining its full-year guidance, Adidas cautioned that the range of potential outcomes has widened, and uncertainty may exert downward pressure on its results later in the year.

Adidas anticipates currency-neutral sales for 2025 to rise at a “high-single-digit” rate (between 5% and 9%), with operating profit projected to reach between 1.7 billion and 1.8 billion euros.

Adidas reported improved sales of running shoes and apparel during the first quarter as the company seeks to better compete with emerging brands such as On and Hoka, which have gained traction at the cost of established brands like Nike, Adidas, and Puma.

Adidas shares remained stable in early trading.