ADIDAS (ADS) earnings Q2 2025

Shares of Adidas fell Wednesday after the German sportswear giant flagged a double-digit million euro hit from U.S. tariffs in the second quarter and warned that current import levies will push up the cost of its U.S. goods.

The world’s second-largest sports retailer said that added costs associated with tariffs could total 200 million euros ($231 million) in the second half of this year.

“The price increases, if any, will only be in the U.S.,” CEO Bjørn Gulden told reporters during an earnings call.

Shares shed as much as 9% in early trade before recovering losses slightly to trade down 7.4% by 11:35 a.m. London time (6:35 a.m. ET).

Adidas said that it had not yet implemented any price hikes in response to tariffs but had instead reallocated its sourcing mix.

Gulden added that management would conduct a pricing review once the final rate of U.S. tariffs on global imports are confirmed on or around Aug. 1., and suggested that price increases were more likely to be applied to new products rather than existing lines.

“What we can say is we will not be the price leaders. We will move slowly and see what is happening in the market,” he said.

The company meantime flagged potential broader risks to consumer demand should U.S. tariffs set off a surge in inflation.

“Tariffs, and especially the uncertainty, make things difficult right now. For Adidas, it’s about maneuvering through this as best we can without damaging the business long-term,” Gulden said.

“We do also not know what the indirect impact on consumer demand will be should all these tariffs cause major inflation,” Gulden said in a statement accompanying its earnings update.

Adidas nevertheless maintained its full-year guidance, but noted this could change as it cited “elevated uncertainty due to U.S. tariffs and macroeconomic risks.”

It currently expects full-year currency-neutral sales to increase at the high-single digit rate and operating profit to rise to between 1.7 billion euros and 1.8 billion euros.

It comes as the sports retailer posted weaker-than-expected second-quarter sales, with the U.S. seeing the softest sales growth.

Revenues rose 2% year-on-year in the three months to June 30 to 5.95 billion euros, the company said flagging a negative currency impact of 300 million euros. LSEG analysts had forecast sales of 6.23 billion euros.

Operating profit rose 58% annually in the quarter 546 million euros versus the 518 million euros forecast.