Adidas slumps 6% as sportswear giant warns tariffs to drive up U.S. prices

Shares of Adidas fell Wednesday aft the German sportswear elephantine flagged a double-digit cardinal euro deed from U.S. tariffs successful the 2nd 4th and warned that existent import levies volition propulsion up the outgo of its U.S. goods.

The world's second-largest sports retailer said that added costs associated with tariffs could full 200 cardinal euros ($231 million) successful the 2nd fractional of this year.

"The terms increases, if any, volition lone beryllium successful the U.S.," CEO Bjørn Gulden told reporters during an net call.

Shares shed arsenic overmuch arsenic 9% successful aboriginal commercialized earlier recovering losses somewhat to commercialized down 6% by 9:50 a.m. London clip (4:50 a.m. ET).

Adidas said that it had not yet implemented immoderate terms hikes successful effect to tariffs but had alternatively reallocated its sourcing mix.

Gulden added that absorption would behaviour a pricing reappraisal erstwhile the last complaint of U.S. tariffs connected planetary imports are confirmed connected oregon astir Aug. 1., and suggested that terms increases were much apt to beryllium applied to caller products alternatively than existing lines.

"What we tin accidental is we volition not beryllium the terms leaders. We volition determination dilatory and spot what is happening successful the market," helium said.

The institution meantime flagged imaginable broader risks to user request should U.S. tariffs acceptable disconnected a surge successful inflation.

"Tariffs, and particularly the uncertainty, marque things hard close now. For Adidas, it's astir maneuvering done this arsenic champion we tin without damaging the concern long-term," Gulden said.

"We bash besides not cognize what the indirect interaction connected user request volition beryllium should each these tariffs origin large inflation," Gulden said successful a connection accompanying its net update.

Adidas nevertheless maintained its full-year guidance, but noted this could alteration arsenic it cited "elevated uncertainty owed to U.S. tariffs and macroeconomic risks."

It presently expects full-year currency-neutral income to summation astatine the high-single digit complaint and operating nett to emergence to betwixt 1.7 cardinal euros and 1.8 cardinal euros.

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

Revenues roseate 2% year-on-year successful the 3 months to June 30 to 5.95 cardinal euros, the institution said flagging a antagonistic currency interaction of 300 cardinal euros. LSEG analysts had forecast income of 6.23 cardinal euros.

Operating nett roseate 58% annually successful the 4th 546 cardinal euros versus the 518 cardinal euros forecast.