Adidas braces for potential consequences of American tax increases - Adidas frets over potential repercussions from proposed U.S. tariffs
Hey there! Let's dive into the latest from Adidas, the iconic German sportswear brand. Despite a stellar first quarter, they're battling a looming threat from US tariffs, causing a headache for their Q2 predictions.
You know, Bjørn Gulden, Adidas' CEO, ain't too happy about the uncertainty hanging over his US biz. In Herzogenaurach, he admitted that if it wasn't for these tariffs, they'd be popping champagne right about now, boosting their full-year outlook. But alas, these tariffs are casting a long shadow.
Here's the deal: Adidas has slashed exports to the US from China to the absolute minimum. Why's that? Well, because they're not producing much in the good ol' US of A, so these higher tariffs translate to higher costs for everything they sell stateside. Their production mostly happens in places like Vietnam and Bangladesh.
Now, Abbie Road First Year Finance ain't here, but here's a gist: Gulden's trying to say that the game's all up in the air while these negotiations between the US and importing countries are still going on. They can't wrap their heads 'round the final tariffs yet, and that means they can't figure out necessary price hikes, let alone how they'll affect customer behavior.
Adidas posted some impressive figures for Q1 2025. They raked in €6.153 billion in revenue, a 13% surge year-on-year. Their quarterly net income? A hefty €436 million, more than doubling the previous year's quarter.
- Adidas
- Q2 Woes
- US Tariffs
- Bjørn Gulden
- Vietnam
- Bangladesh
- Tariff Negotiations
- Customer Behavior
- Bjørn Gulden, CEO of Adidas, is grappling with the uncertainty caused by US tariffs, which have cast a long shadow on the predicted Q2 finances of the German sportswear brand, despite a strong start in Q1.
- Adidas has reduced exports to the US from China to a minimum due to the implementation of higher tariffs, as their production mainly takes place in countries such as Vietnam and Bangladesh.
- These anticipated tariffs are causing concern for Adidas, as they struggle to calculate potential price hikes and evaluate their impact on customer behavior, pending the conclusion of negotiations between the US and importing countries.
- Despite strong Q1 figures in 2025, with €6.153 billion in revenue and a net income of €436 million, the outcome of the US tariff negotiations remains crucial in determining the health of Adidas' business for the remainder of the year.