Adidas Reports €120 Million US Tariff Hit with Q3 North America Sales Decline

Adidas is facing a challenging market environment in North America, with third-quarter sales down 5%, impacted by US tariffs imposed under President Donald Trump and a strong euro. The company expects the tariffs to cost around €120 million for the year, primarily affecting the final quarter, a reduction from an earlier estimate of €200 million due to strategic price hikes and supply chain adjustments. Adidas has avoided raising prices on lower-cost products but increased prices on premium items like the Samba sneaker, now priced at $100. Additionally, Adidas has reduced sourcing from China to the US to mitigate tariff impacts and is investing heavily in US college sports to compete with Nike, aiming to double its US business despite the significant market gap. The discontinuation of the Yeezy sneaker line, following controversy around its creator, also contributed to the North American sales decline. Despite these challenges, Adidas reported global revenue growth of 3% to a record €6.63 billion and raised its full-year core profit forecast to around €2 billion.