29 April 2025 : Adidas AG has opted not to raise its financial targets for 2025, even after posting stronger-than-expected first-quarter profits, due to the rising concerns over US President Donald Trump-imposed trade tariffs.
The tariffs imposed by the United States will raise prices on consumers in the world’s biggest sports market and could upend the German brand’s momentum.
“Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products,” Chief Executive Bjoern Gulden said in the statement, which expanded on last week’s preliminary report of surprisingly robust earnings.
The German sportswear giant acknowledged that under normal circumstances, it would have upgraded its full-year outlook given the solid start to the year.
“We therefore stick to our original outlook but admit that there are uncertainties that could put negative pressure on this later in the year,” he said.
Summary:
Adidas reports strong Q1 earnings but freezes its 2025 outlook, citing uncertainties from U.S. tariffs on imports, which may lead to higher costs and affect demand.