Adidas posts strong profits but cautions US tariffs could push up prices
Adidas has reported a better-than-expected start to 2025, with a rise in both sales and profits — but warned that rising tariffs on imports into the US could push up costs and prices in the months ahead.
Adidas has reported a better-than-expected start to 2025, with a rise in both sales and profits — but warned that rising tariffs on imports into the US could push up costs and prices in the months ahead.
The German sportswear giant saw revenues rise by nearly €700m to €6.15bn in the first quarter, a 13% increase on a currency-neutral basis. The Adidas brand grew 17% during the period, with double-digit gains across all markets and channels.
Operating profit surged by 82% to €610m, driving an operating margin of 9.9%, while net income from continuing operations more than doubled to €436m.
Chief executive Bjørn Gulden said: “I am very proud of what our team achieved in Q1. Double-digit growth across all markets and channels in today’s volatile environment shows the strength of our brand and underlines the great job our people are doing.”
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Despite the strong performance, Adidas flagged growing concerns about potential impacts from US tariffs on foreign imports, which Gulden said would eventually lead to higher costs — and possibly higher prices for US consumers.
“Although we had already reduced the China exports to the US to a minimum, we are somewhat exposed to those currently very high tariffs,” Gulden explained.
“What is even worse for us is the general increase in US tariffs from all other countries of origin. Since we currently cannot produce almost any of our products in the US, these higher tariffs will eventually cause higher costs for all our products for the US market.”
The retailer said it was too early to quantify the full effect on demand, and maintained its full-year outlook despite the uncertainty.
The warning comes as fashion giant Shein has already hiked US prices by up to 377% following the Trump administration’s new tariffs on Chinese imports.
Adidas continues to forecast high single-digit currency-neutral sales growth in 2025, and expects operating profit to reach between €1.7bn and €1.8bn — although the brand acknowledged that tariff-related risks could add pressure later in the year.
The performance was driven by strong demand for new styles across both lifestyle and performance categories, with footwear sales up 17% and apparel up 8%. Key growth areas included retro and low-profile trainers like the Samba, Campus, and SL72, alongside performance products such as Adizero running shoes and the latest Predator football boots.
The results follow a turbulent period for the business, including a restructuring earlier this year which saw 500 jobs cut at its headquarters in Herzogenaurach.
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