Adidas<\/a> 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.<\/p>\nThe 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.<\/p>\n
Shares were down 9.1% by 8:40 a.m. London time (3:40 a.m. ET).<\/p>\n
The company also flagged potential risks to consumer demand should U.S. tariffs set off a surge in inflation.<\/p>\n
“We do also not know what the indirect impact on consumer demand will be should all these tariffs cause major inflation,” CEO Bj\u00f8rn Gulden said.<\/p>\n
The company nevertheless maintained its full-year guidance, but noted this could change as it cited “elevated uncertainty due to U.S. tariffs and macroeconomic risks.”<\/p>\n
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.<\/p>\n
It comes as the sports retailer posted an uptick in second-quarter sales, with the U.S. seeing the softest sales growth.<\/p>\n
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.<\/p>\n
Operating profit rose 58% annually in the quarter 546 million euros versus the 518 million euros forecast.<\/p>\n","protected":false},"excerpt":{"rendered":"Adidas shoes are displayed at a DSW store on January 31, 2024 in Novato, California.\u00a0 Justin Sullivan |…\n","protected":false},"author":2,"featured_media":47103,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[37001,448,449,28,122,8084,101,5682,447],"class_list":["post-47102","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-adidas-ag","tag-breaking-news-business","tag-breaking-news-economy","tag-business","tag-business-news","tag-earnings","tag-economy","tag-retail-industry","tag-trade"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/47102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=47102"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/47102\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/47103"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=47102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=47102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=47102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}