Adidas saw its shares drop 7.5% in early Wednesday trading after second-quarter sales came in below expectations and the company warned of an added €200 million ($231 million) cost burden from new U.S. tariffs in the second half of 2024.
Despite reporting better-than-expected quarterly profits, CEO Bjorn Gulden cited uncertainty from U.S. trade policies under President Trump.
"We still do not know what the final tariffs in the U.S. will be," CEO Bjorn Gulden said in a statement. Another unknown is the indirect impact on consumer demand if the tariffs cause 'major inflation', he added.
Sales rose 2.2% to €5.95 billion ($6.9 billion), falling short of the €6.2 billion forecast by analysts.
The sales slowdown comes after a period of strong growth driven by popular products like the Samba and Gazelle sneakers, raising concerns that Adidas may be losing steam.
"For investors to view this as a temporary setback, the company will need to deliver a reassuring message regarding the outlook for H2 and the early 2026 order book," UBS analyst Robert Krankowski said in a note to clients.
U.S. tariffs targeting Vietnamese and Indonesian goods—Adidas' top sourcing countries are set to impact the brand heavily, with inventories rising 16% to €5.26 billion as Adidas frontloaded orders to avoid tariff hikes.
Britain, France, Germany, Sweden and the Netherlands said on Saturday (14 February) they are convinced that late Kremlin critic Alexei Navalny was poi...
“Respected and feared globally,” U.S. President Donald Trump told troops at Fort Bragg on Friday (13 February), framing America’s renewed streng...
The U.S. Department of Homeland Security (DHS) has partially shut down after Congress failed to reach agreement on immigration enforcement changes, de...
Israeli army chief Eyal Zamir said on Friday (13 February) that Israel remains committed to the complete demilitarization of the Gaza Strip and the di...
“Real security guarantees are needed before the war ends,” Ukrainian President Volodymyr Zelenskyy said at the Munich Security Conference on Satur...
Britain, France, Germany, Sweden and the Netherlands said on Saturday (14 February) they are convinced that late Kremlin critic Alexei Navalny was poisoned with a lethal toxin in a Russian penal colony two years ago.
“Respected and feared globally,” U.S. President Donald Trump told troops at Fort Bragg on Friday (13 February), framing America’s renewed strength against to mounting pressure on Iran amid stalled nuclear talks.
The U.S. Department of Homeland Security (DHS) has partially shut down after Congress failed to reach agreement on immigration enforcement changes, deepening a political standoff between the White House and Senate Democrats.
Israeli army chief Eyal Zamir said on Friday (13 February) that Israel remains committed to the complete demilitarization of the Gaza Strip and the disarmament of Hamas, calling for intensified operations to destroy tunnel networks and control access along the ceasefire line.
Europe heads into the Munich Security Conference, on Friday (13 February), amid deepening unease over U.S. policy, as President Donald Trump’s hard-line stance on defence, trade and territory fuels doubts about Washington’s long-term commitment to transatlantic security.
American figure skating star Ilia Malinin endured a dramatic collapse in the men’s free skate on Friday night, falling twice and tumbling out of medal contention at the Milan Cortina Winter Olympics as Kazakhstan’s Mikhail Shaidorov surged to a surprise gold medal.
“Respected and feared globally,” U.S. President Donald Trump told troops at Fort Bragg on Friday (13 February), framing America’s renewed strength against to mounting pressure on Iran amid stalled nuclear talks.
Dubai-based global ports operator DP World said on Friday that its long-serving chairman and chief executive, Sultan Ahmed Bin Sulayem, has stepped down following mounting pressure linked to alleged ties to disgraced financier Jeffrey Epstein.
Speaking at Munich Security Conference, Ukrainian foreign minister Andrii Sybiha calls for decisive steps ahead of expected Geneva talks
Millions of Colombian roses have arrived in the United States just in time for Valentine’s Day, keeping the country on track as the world’s second-largest flower exporter. Between 15 January and 9 February, Colombia shipped roughly 65,000 tons of fresh-cut blooms.
Russia’s car market is continuing to receive tens of thousands of foreign-brand vehicles via China despite sanctions imposed after Moscow’s full-scale invasion of Ukraine in 2022, a journalistic investigation has found.
Türkiye’s national energy company, TPAO, has struck a new cooperation deal with U.S. energy giant Chevron, signing a memorandum of understanding to explore joint oil and gas exploration and production opportunities, the Turkish Energy and Natural Resources Ministry announced on Thursday.
Wall Street ended sharply lower on Tuesday as investors worried about artificial intelligence (AI) creating more competition for software makers, keeping them on edge ahead of quarterly reports from Alphabet and Amazon later this week.
U.S. stock markets finished mixed on Wednesday (28 January) as investors reacted calmly after the Federal Reserve left interest rates unchanged, a decision that had been widely expected and largely priced in.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment