Adidas has indicated that the increase in tariffs will result in higher prices for its U.S. customers, as the company currently does not produce most of its products domestically. CEO Bjorn Gulden explained that despite strategies like sending additional inventory to the U.S. to mitigate immediate tariff impact, longer-term effects will inevitably lead to price hikes. U.S. sales growth has slowed to 3%, while other regions like Europe and China are seeing stronger sales. The company has decided not to issue a profit outlook due to ongoing tariff uncertainties affecting its production in Asia.
Adidas stated that rising tariffs will ultimately lead to higher prices for U.S. customers as production outside the U.S. limits pricing flexibility.
Bjorn Gulden noted that while they have sent extra inventory to the U.S. to beat tariffs temporarily, the cost increase is inevitable.
Despite a 3% sales growth in the U.S., Adidas anticipates that rising tariffs will affect consumer demand, making price impacts hard to quantify.
Adidas refrained from providing a profit outlook for the year due to tariff unpredictability impacting its production strategy in Asia.
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