Adidas slumps after flagging $231 million tariff cost, weaker sales
Adidas shares are 6% lower in early trading in Germany on Wednesday, after the shoemaker posted lower-than-expected sales in the second quarter and warned of the impacts of US tariffs in the second half of the year.
The disappointing sales results, which despite rising 2.2% to $6.9 billion (5.95 billion euros) fell shy of analyst expectations for revenue of 6.2 billion euros, signaled that the strong momentum in its trending Samba and Gazelle shoes might be starting to fade — just as tariffs hit the company’s bottom line.
Per Bloomberg, analyst estimates suggest that Wall Street was expecting an uplift in the company’s annual profit guidance — but no such revision came, with the company maintaining its operating profit forecast of between 1.7 billion and 1.8 billion euros this year.
Higher tariffs — such as the 20% and 19% levies on goods from Vietnam and Indonesia, respectively, Adidas’ two biggest sourcing countries — are expected to cost the company 200 million euros ($231 million) in the second half of the year.
Per Bloomberg, analyst estimates suggest that Wall Street was expecting an uplift in the company’s annual profit guidance — but no such revision came, with the company maintaining its operating profit forecast of between 1.7 billion and 1.8 billion euros this year.
Higher tariffs — such as the 20% and 19% levies on goods from Vietnam and Indonesia, respectively, Adidas’ two biggest sourcing countries — are expected to cost the company 200 million euros ($231 million) in the second half of the year.
