Adidas Reports Strong Q1 Growth Amid Tariff Concerns

Adidas reported strong first-quarter results with global sales climbing 13% and robust growth across all major markets, including an eighth consecutive quarter of revenue increase in China, thanks to effective localization and sports market expansion. The company's footwear division led the way, with notable double-digit growth, and Adidas outperformed rivals like Nike and Puma, even after discontinuing the profitable Yeezy line. However, Adidas cautioned that looming US tariffs on imports from China, Vietnam, and Indonesia could significantly increase costs for products sold in America, possibly leading to higher retail prices. These tariff-related uncertainties have prevented Adidas from raising its full-year outlook despite a solid order pipeline. The company has minimized US-bound exports from China, but broader tariff hikes threaten to impact its supply chain and profitability. As global trade tensions persist, Adidas and similar brands face the challenge of balancing operational strength with unpredictable international trade policies.