CEO Gulden sees price increases in the US as inevitable
Sports goods manufacturer Adidas is facing significantly rising costs due to US tariff policy. As CEO Björn Gulden announced during the presentation of its quarterly results, the high tariffs on products from Asia have now been extended to other countries of origin, despite previously reduced exports from China. "Since we manufacture almost none of our products in the USA, the new tariffs will lead to higher costs for our US goods," Gulden said.
The company has not yet raised prices in the US. Adidas does not want to be the first company in the industry to take this step. "We are not under financial pressure to act quickly," Gulden emphasized. No price increases are planned in other regions. The impact of the tariffs on US business is not expected to be felt until the third quarter. The company expects a minor impact in the second quarter, as many goods were shipped before the new regulations came into effect.
Despite geopolitical uncertainties, Adidas confirmed its annual forecast. After a strong first quarter with currency-adjusted sales growth of 13 percent to approximately €6,2 billion and an 82 percent increase in operating profit to €610 million, the company expects high single-digit sales growth for the full year. The Adidas brand is expected to achieve double-digit growth, with operating profit forecast between €1,7 billion and €1,8 billion.
Adidas generates approximately 20 percent of its sales in the United States. The company recorded double-digit growth in all other markets. The former best-selling "Yeezy" weighed on last year's figures in North America, but excluding this effect, significant growth was also achieved there.
Gulden sees the announced US tariffs as part of an escalating trade conflict. Shifting production to the US is currently not realistic. Adidas intends to offset the resulting burdens with strong results in other regions of the world. The growth strategy remains unchanged – despite an increasingly volatile global environment.
