Adidas, Europe’s largest sportswear manufacturer, announced on July 30 that second-quarter sales fell short of expectations. The company said its business had been impacted by U.S. tariffs and may raise prices in the market.
Adidas CEO Bjørn Gulden said the company was negatively impacted by U.S. tariffs in the quarter and expects further effects in the second half of the year.
“We have already had a negative impact in the double-digit euro millions in the second quarter, and the latest indications of tariffs will directly increase the cost of our products for the U.S. with up to €200 million during the rest of the year,” Gulde said in the company statement.
President Donald Trump announced on July 27 that the United States had reached a trade agreement with the European Union. Under the deal, U.S. tariffs on most European goods will rise to 15 percent—half the 30 percent rate Trump had threatened to impose in a July 12 letter to European Commission president Ursula von der Leyen.
Meanwhile, Trump announced trade deals with Vietnam and Indonesia—Adidas’s two largest sourcing regions—on July 2 and July 15, respectively, imposing tariffs of 20 percent and 19 percent, respectively, on goods from the two countries.
“You also have to remember that the price increases that might come in the U.S.,” he said. “Because the tariffs should not have any impact on prices in any other market.”
Although Adidas logged a revenue miss in the second quarter, its operating profits were up by 58 percent, to 546 million euros ($625.7 million), while operating margin improved by 3.2 percent, to 9.2 percent. Diluted earnings per share were 4.47 euros ($5.27), more than double the 2.05 euros ($2.41) reported a year earlier.
For the first half of this year, Adidas reported revenue growth of 14 percent and gross margin expansion of 0.9 percentage points, to 51.9 percent. The firm’s operating profit surged 70 percent, to 1.2 billion euros ($1.37 billion).
“I am very happy and actually again proud of what our team has delivered in both the second quarter and first half of 2025,” Gulden said. “We have continuously grown double digits, and we ended the first half year with growth of 14 percent for the Adidas brand.”
Adidas is the second-largest sportswear brand in the world, behind Nike. The company completed the sale of its remaining Yeezy inventory at the end of 2024, but the company’s second-quarter results do not include any Yeezy revenues.
The Yeezy clothing line was founded by American rap artist Kanye West. The firm ended its collaboration with West’s company at the end of 2022.
