Adidas has warned that higher US tariffs will raise its expenses by approximately US $ 223 million in the second half of the year. The sportswear giant said that former President Donald Trump’s increased tariffs have already negatively impacted its cost base, resulting in ‘double-digit’ millions of euros in additional costs during the second quarter. The US is planning to impose a 20% tariff on imports from Vietnam and a 19% tariff on goods from Indonesia.
Adidas reported strong financial results for the second quarter of 2025, with the Adidas brand growing 12% year-over-year, supported by robust performance across all categories, channels, and markets. The company posted net sales of US $ 6.54 billion, although this was impacted by negative foreign exchange effects amounting to roughly US $ 327 million. Despite facing challenges from currency fluctuations, business mix, and tariffs, the company improved its gross margin by 0.9 percentage points to 51.7%.
Operating profit surged 58% to US $ 595 million, while the operating margin rose 3.2 percentage points to 9.2%. Net income from continuing operations increased by 77%, reaching US $ 408 million. Adidas reaffirmed its full-year outlook, while acknowledging elevated uncertainty due to U.S. tariffs and broader macroeconomic risks.
For the first half of 2025, Adidas delivered 14% revenue growth for its core brand, with double-digit gains across all channels and regions. Gross margin improved by 0.9 percentage points to 51.9%, and operating profit jumped 70% to US $ 1.31 billion, resulting in an operating margin of 9.6%. Net income from continuing operations more than doubled during the period, reaching US $ 886 million.
Adidas CEO Bjørn Gulden noted that the company has consistently achieved double-digit growth, culminating in a 14% increase for the Adidas brand in the first half of the year. He highlighted the brand’s ability to generate consumer excitement, extend the lifecycle of existing product franchises, launch new ones, and carry that momentum into the apparel segment, which grew 17% in Q2. Performance categories also delivered strong results, with Running leading the way in the second quarter, posting growth of over 25%.
The Adidas brand’s 12% growth in Q2 and 14% growth in the first half provided enough momentum to nearly reach the company’s mid-term EBIT margin target of 10%. The EBIT margin came in at 9.2% for Q2 and 9.6% for the first half—figures that exceeded initial expectations. This performance was driven by increased revenue, a robust gross margin, and tighter cost control.
