Adidas Warns Tariffs May Spur U.S. Price Hikes

Adidas reported that new U.S. tariffs on imports from Vietnam and Indonesia—its largest sourcing countries—will increase costs by about 200 million euros ($231 million) in the second half of the year after a 'double-digit' million euro impact in Q2. The company warned it may have to raise prices in the U.S., particularly on new products, while aiming to keep prices stable on existing models, as it remains cautious about inflation's effect on demand. Q2 net sales rose 2.2% year-on-year to 5.95 billion euros, missing analyst expectations partly due to negative currency effects and the absence of Yeezy sales. Operating profit beat forecasts at 546 million euros, aided by higher prices and lower costs. Adidas' shares declined as investors worried over lost sales momentum following strong growth from retro sneaker trends. The company kept its full-year outlook but cited ongoing uncertainty from tariffs and macroeconomic risks, with inventories rising 16% after frontloading U.S. shipments.