With an increase in sales and profits, Adidas has announced a better-than-expected start to 2025. However, the company has cautioned that rising import tariffs into the US could drive up costs and prices in the months to come.
In the first quarter, the German sportswear giant’s revenues increased by about US $ 798 million to US $ 7.02 billion, or 13 per cent on a currency-neutral basis. During that time, sales of the Adidas brand increased by 17 per cent, with double-digit increases in every area and channel.
Net income from continuing operations more than doubled to US $ 497 million, while operating profit jumped by 82 per cent to US $ 696 million, resulting in an operating margin of 9.9 per cent.
Notwithstanding the impressive results, Adidas raised concerns about the possible effects of US tariffs on imports, which CEO Bjørn Gulden stated would ultimately result in greater costs, potentially raising prices for US consumers.
Gulden clarified that Adidas is partially subject to those presently extremely high tariffs, even though China exports to the US have been minimised.
The overall rise in US tariffs from all other countries of origin is significantly worse for the business, he said, adding that these additional tariffs will eventually result in higher prices for all Adidas items for the US market because the company is now unable to produce nearly all of its products in the US.
Despite the uncertainties, the retailer maintained its full-year outlook, stating that it was too early to fully quantify the impact on demand.
Adidas anticipates operating profit to reach between US $ 1.94 billion and US $ 2.05 billion in 2025, and the company maintains its high single-digit currency-neutral sales growth prediction. However, the brand recognised that pressure from tariff-related risks could increase later in the year.
Strong demand for new styles in the lifestyle and performance categories drove the performance, as evidenced by the 17 per cent increase in footwear sales and the 8 per cent increase in apparel sales. Performance items like Adizero running shoes and the newest Predator football boots, as well as low-key, vintage sneakers like the Samba, Campus, and SL72, were important development areas.
