Adidas to raise prices in the US but maintains outlook
The CEO of Adidas has said despite other fashion companies revising estimates, the German brand would maintain its outlook of achieving around €1.7 billion in profit this year.
Adidas grew 12% in the second quarter with sales of €6 billion.
Bjørn Gulden said: “The year has started great for us and normally we would now be very bullish in our outlook for the full year. We feel the volatility and uncertainty in the world does not make this prudent. We have already had a negative impact in the double-digit euro millions in Q2 and the latest indications of tariffs will directly increase the cost of our products for the US with up to €200 million impact during the rest of the year. We do also not know what the indirect impact on consumer demand will be should all these tariffs cause major inflation.
“I have seen that many companies have either removed their outlook fully or reduced it dramatically. We have decided to stay with our initial outlook for the full year and a guidance for an operating profit of between € 1.7 billion and € 1.8 billion. We currently feel confident to deliver it, but of course this might change – also upwards should headwinds be less than we currently assume.”
He added that the company aimed to become the leader in all markets except for North America, where it targeted a doubling of its revenues.
