Adidas Says Strong Sales Seen In Q1, But Tariff Pressures To Drive Up Costs For American Market

Adidas, the German sportswear giant, reaffirmed its outlook for 2025 on Tuesday but cautioned that new US tariffs could inflate costs for products sold in the American market. 

The company, which has already scaled back exports from China to the United States, now faces broader tariff-related risks, especially from other sourcing countries, reported Reuters.

"Although we had already reduced the China exports to the US to a minimum, we are somewhat exposed to those currently very high tariffs," CEO Bjorn Gulden said in a statement. He emphasised that the proposed tariff hikes on imports from multiple countries, not just China, could raise expenses across Adidas’ product lines.

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Tariff Uncertainty Shadows Optimistic Forecast

US trade policy shifts have created fresh complications for sportswear brands like Adidas, which previously diversified their supply chains to reduce reliance on Chinese manufacturing. 

Countries such as Vietnam and Indonesia—once considered safer alternatives—are now facing unexpectedly steep levies. These tariffs, currently on hold until July, have temporarily spared Adidas and its peers, but the uncertainty remains.

According to the company, these elevated costs are likely to be passed on to consumers eventually. However, Adidas admitted that it is too early to estimate the extent of the price hikes or gauge how shoppers might respond. The company noted that it was not possible to quantify the impact or predict consumer behaviour currently.

CEO Gulden added that Adidas might have upgraded its full-year revenue and operating profit projections, supported by a strong first quarter and a solid order pipeline, if it weren't for the ambiguity surrounding the tariff landscape.

Sales Surge in Q1 Amid Competitive Momentum

Despite geopolitical and trade-related headwinds, Adidas recently delivered a strong performance in the first quarter of 2025. The company reported a robust 13 per cent increase in quarterly sales, reaching €6.15 billion —exceeding the €6.095 billion  forecasted by analysts. Operating profit surged 82 per cent to €610 million , bringing the operating margin to 9.9 per cent, well ahead of the expected 8.9 per cent.

Adidas is scheduled to reveal its final January-March quarter earnings on April 29.

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