Adidas warns customers of impending price hikes due to tariffs

Summary

Price hike ahead

Adidas announced that upcoming American tariffs will increase prices for its products in the U.S. The Germany-based company produces most of its merchandise in Asia.

Uncertain increases

The company did not specify how much its sneakers and apparel prices would increase.

Strong Q1 performance

Adidas had a strong first quarter, with net income increasing by 155% and robust sales.

Adidas, the sportswear staple, has warned Americans that tariffs on its products will lead to price hikes. — Image credit: Plexi Images/GHI/Universal Images Group via Getty Images

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Summary

Price hike ahead

Adidas announced that upcoming American tariffs will increase prices for its products in the U.S. The Germany-based company produces most of its merchandise in Asia.

Uncertain increases

The company did not specify how much its sneakers and apparel prices would increase.

Strong Q1 performance

Adidas had a strong first quarter, with net income increasing by 155% and robust sales.

Full story

Adidas has warned Americans that tariffs on its products will lead to price hikes. Based in Germany, the company did not say how much those prices would increase.

The sportswear staple has key suppliers in countries affected by President Donald Trump’s recently announced tariffs, including China, Vietnam and Cambodia.

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What did the company say specifically about future prices?

While first-quarter profits increased for Adidas, it warned of economic headwinds. It released a statement on Tuesday, April 29: “Higher tariffs will eventually cause higher costs for all our products for the U.S. market. “

CNBC reported that the company has already reduced exports of its merchandise made in China. Trump had previously announced a 145% tariff on Chinese goods coming into the U.S.

Adidas stated that the company is uncertain about the final levies.

“Therefore, we cannot make any final decisions on what we do. Cost increases due to higher tariffs will eventually cause price increases, but it is currently impossible to quantify these or to conclude what impact this could have on consumer demand for our products.”
Adidas

What are some of the Adidas staples?

Adidas is best known for its sneakers, including Stan Smith, Sambas and Superstar. It also sells a variety of sportswear. Many of these products are made in factories in Vietnam and Cambodia, which CNBC reported are subject to American tariffs in the 40% range.

The company said its brand and orders remain strong. Its net income increased by 155% in the first quarter, and sales increased by nearly 13%. Analysts said footwear and lifestyle clothing have been strong performers.

Where does Adidas make most of its products?

Adidas produces the majority of its products, with approximately 70% to 80% made in Asia and 20% to 30% in Europe, according to SourcingWise.com. Adidas said it does not manufacture nearly any of its products in the U.S.

Shea Taylor (Producer) and Shianne DeLeon (Video Editor) contributed to this report.

Tags: Adidas, Donald Trump

[CRAIG NIGRELLI]

Adidas, the sportswear staple, is warning American customers that tariffs on its products will lead to price hikes. The company, based in Germany, did not say how much those prices would increase.
Adidas has key suppliers in countries that are subject to the recently announced tariffs by President Trump. They include China, Vietnam and Cambodia.
While first quarter profits increased for Adidas, it warned of economic headwinds. It released a statement on Tuesday saying, “Higher tariffs will eventually cause higher costs for all our products for the U.S. market. “
CNBC reports that Adidas has already reduced exports of its merchandise made in China. President Trump had previously announced a 145% tariff on Chinese goods, coming into the U.S.
The statement from Adidas noted that the company does not know what the final levies will be, (quote) “ Therefore, we cannot make any final decisions on what we do. Cost increases due to higher tariffs will eventually cause price increases, but it is currently impossible to quantify these or to conclude what impact this could have on consumer demand for our products. “
Adidas is best known for its sneakers including Stan Smith, Sambas and Superstar. It also sells an assortment of sportswear. Many of those goods are made in factories in Vietnam and Cambodia, which CNBC reports are subject to American tariffs in the 40% range.
The company says its brand and orders remain strong. It says net income went up in the first quarter by 155 % and sales increased by nearly 13%. Analysts say footwear has been a strong performer, as has lifestyle clothing.
SourcingWise.com indicates that Adidas produces a vast majority of its products, anywhere from 70% to 80% in Asia and 20 to 30 percent Europe, with Adidas saying it currently does not produce almost any of its products in the U.S.

Why this story matters

The Adidas story matters because it highlights the significant impact of trade tariffs on global supply chains and consumer prices, particularly in the sports apparel industry.

Tariff Impact

The rising tariffs imposed by the U.S. government are expected to increase costs for Adidas and ultimately raise prices for consumers, potentially affecting sales.

Supply Chain Vulnerability

Adidas's reliance on manufacturing in countries impacted by tariffs, such as China and Vietnam, exposes the company to significant financial risks due to geopolitical tensions.

Market Response

The situation may influence consumer demand and market dynamics, with Adidas seeking to mitigate the effects through improved performance in global markets outside the U.S.

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Behind the numbers

In the first quarter, Adidas achieved a net profit of approximately $488 million, a twofold increase from the previous year, showcasing the company's recovery. Their sales rose to approximately $6.94 billion, although North American sales growth was limited to just 3% due to the Yeezy line phase-out, indicating regional disparities in performance.

Do the math

Adidas reported a 13% increase in revenues, bringing total sales to approximately $7.0 billion. Its operating profit rose 82% to roughly $694 million. They project an operating profit for 2025 between $1.94 billion and $2.05 billion, demonstrating financial health despite tariff challenges.

Global impact

The uncertainty around U.S. tariffs affects global supply chains and costs, influencing Adidas’s pricing strategies worldwide. As Adidas seeks to stabilize elsewhere, its challenges reflect broader global trade tensions and their impacts on multinational operations in various markets.