Adidas doesn’t manufacture most of its products in the US|BrokenSphere|CC BY-SA 3.0
Adidas warned that higher tariffs would increase its product prices for US consumers. CEO Bjorn Gulden said the German sportswear giant is bracing for the impact of the 10% baseline import duty.
The famed sneaker maker doesn’t manufacture most of its products in the US.
Speaking to analysts on Tuesday, CEO Gluden mentioned Adidas rushed extra inventory into America ahead of the tariff change. It also rerouted Chinese-made products to other markets.
The company hasn’t quantified how much prices will rise. The tariff uncertainty has even kept it from issuing a full-year profit outlook.
In Q1, Adidas saw just a 3% sales bump in the US, mainly due to selling off the Yeezy line collaboration with rapper Ye. Their partnership ended in 2022 following a controversy.
Adidas’ sales in Europe and China were up 14% and 13%, respectively.