Latest news with #BjornGulden
Zawya
3 hours ago
- Business
- Zawya
Adidas says tariffs will add $231mln to second-half costs
Adidas said on Wednesday higher U.S. tariffs would add around 200 million euros ($231 million) to its costs in the second half, having impacted its second quarter results by "double-digit" millions of euros. Highlighting the impact of U.S. President Donald Trump's volatile trade policies, Adidas said uncertainty was holding it back from increasing its annual guidance despite reporting stronger than expected second-quarter profit. "We still do not know what the final tariffs in the U.S. will be," CEO Bjorn Gulden said in a statement. Another unknown is the indirect impact on consumer demand if the tariffs cause "major inflation", he added. Shares in Adidas were down 2.6% in premarket trade. The stock is already down 16% since the start of the year. The U.S. earlier this month announced a 20% levy on many Vietnamese exports and a 19% tariff on goods from Indonesia. Vietnam and Indonesia, Adidas' two biggest sourcing countries, made up 27% and 19% of the company's products respectively as of 2024. Like many other sportswear companies including Puma, Adidas has frontloaded product purchases into the U.S. to try and beat tariffs, driving its inventories up 16% to 5.26 billion euros at the end of June. Net sales, adjusted for currency swings, rose 2.2% to 5.95 billion euros ($6.9 billion) in the quarter, lower than analysts' average estimate of 6.2 billion euros, according to data compiled by LSEG. But quarterly operating profit reached 546 million euros, ahead of analysts' expectations for 520 million euros, a sign that Adidas is selling more products at full price. Adidas' gross margin increased by 0.9 percentage points to 51.7% in the quarter, as reduced discounting and lower product and freight costs mitigated the impacts from currencies and tariffs. Adidas is also having to contend with a stronger euro and weaker dollar, which hit sales by around 300 million euros in the quarter through June. (Reporting by Linda Pasquini in Gdansk and Helen Reid in London; Editing by Matt Scuffham and David Holmes)
Reuters
3 hours ago
- Business
- Reuters
Adidas may hike U.S. prices, flags $231 mln tariff cost
LONDON, July 30(Reuters) - Adidas ( opens new tab shares fell 7% in early trade on Wednesday after the sportswear brand's second-quarter sales missed expectations and it warned higher U.S. tariffs would add around 200 million euros ($231 million) to costs in the second half. Highlighting the impact of U.S. President Donald Trump's volatile trade policies, Adidas said it may have to hike prices in the U.S. and that uncertainty was holding it back from increasing its annual guidance. "We still do not know what the final tariffs in the U.S. will be," CEO Bjorn Gulden said in a statement. "We also do not know what the indirect impact on consumer demand will be should all these tariffs cause major inflation." Adidas will review its pricing and decide which products it could hike prices on in the U.S., once tariffs are finalised, Gulden told journalists on a conference call, declining to say how much prices might increase. "We will try to keep the prices on known models (stable) as long as we can, and then do new pricing on product that hasn't existed before," he said. Adidas sales, adjusted for currency swings, grew 2.2% to 5.95 billion euros ($6.9 billion) in the quarter, lower than analysts' average estimate of 6.2 billion euros, according to data compiled by LSEG. The shortfall will likely fuel fears that, after a run of very strong sales growth fuelled by its trendy three-striped multicoloured Samba and Gazelle shoes, Adidas is losing momentum. "For investors to view this as a temporary setback, the company will need to deliver a reassuring message regarding the outlook for H2 and the early 2026 order book," UBS analyst Robert Krankowski said in a note to clients. The U.S. earlier this month announced a 20% levy on many Vietnamese exports and a 19% tariff on goods from Indonesia - Adidas' two biggest sourcing countries which produce 30% and 23% respectively of Adidas products sold in the U.S. Footwear imports into the U.S. already faced tariffs before Trump, and the new duties mean tariffs on footwear from Vietnam have gone up to 46%, from 26%, and from Indonesia to 43% from 24%, Gulden said. Like many other sportswear companies, including Puma , Adidas has been frontloading product shipments into the U.S. ahead of tariffs, driving its inventories up 16% to 5.26 billion euros at the end of June. Adidas is also contending with a weaker dollar and weaker Chinese yuan, which hit sales by around 300 million euros in the quarter through June. Quarterly operating profit reached 546 million euros, ahead of analysts' expectations for 520 million, and gross margin increased by 0.9 percentage points to 51.7% thanks to reduced discounting and lower product and freight costs. Adidas said "lifestyle" revenues - from sneakers and casual clothing - grew 13%, helped by cow print, leopard print and metallic versions of its SL72 and Samba sneakers. A merchandise collaboration with rock group Oasis for its reunion tour has also boosted sales, Gulden said. ($1 = 0.8651 euros)
The Star
5 hours ago
- Business
- The Star
Adidas says tariffs will add US$231mil to second-half costs
Adidas said on Wednesday higher U.S. tariffs would add around 200 million euros ($231 million) to its costs in the second half, having impacted its second quarter results by "double-digit" millions of euros. Highlighting the impact of U.S. President Donald Trump's volatile trade policies, Adidas said uncertainty was holding it back from increasing its annual guidance despite reporting stronger than expected second-quarter profit. "We still do not know what the final tariffs in the U.S. will be," CEO Bjorn Gulden said in a statement. Another unknown is the indirect impact on consumer demand if the tariffs cause "major inflation", he added. Shares in Adidas were down 2.6% in premarket trade. The stock is already down 16% since the start of the year. The U.S. earlier this month announced a 20% levy on many Vietnamese exports and a 19% tariff on goods from Indonesia. Vietnam and Indonesia, Adidas' two biggest sourcing countries, made up 27% and 19% of the company's products, respectively as of 2024. Like many other sportswear companies including Puma, Adidas has frontloaded product purchases into the U.S. to try and beat tariffs, driving its inventories up 16% to 5.26 billion euros at the end of June. Net sales, adjusted for currency swings, rose 2.2% to 5.95 billion euros ($6.9 billion) in the quarter, lower than analysts' average estimate of 6.2 billion euros, according to data compiled by LSEG. But quarterly operating profit reached 546 million euros, ahead of analysts' expectations for 520 million euros, a sign that Adidas is selling more products at full price. Adidas' gross margin increased by 0.9 percentage points to 51.7% in the quarter, as reduced discounting and lower product and freight costs mitigated the impacts from currencies and tariffs. Adidas is also having to contend with a stronger euro and weaker dollar, which hit sales by around 300 million euros in the quarter through June. - Reuters
Business Recorder
5 hours ago
- Business
- Business Recorder
Adidas says tariffs will add $231 million to second-half costs
Adidas said on Wednesday higher US tariffs would add around 200 million euros ($231 million) to its costs in the second half, having impacted its second quarter results by 'double-digit' millions of euros. Highlighting the impact of U.S. President Donald Trump's volatile trade policies, Adidas said uncertainty was holding it back from increasing its annual guidance despite reporting stronger than expected second-quarter profit. 'We still do not know what the final tariffs in the U.S. will be,' CEO Bjorn Gulden said in a statement. Another unknown is the indirect impact on consumer demand if the tariffs cause 'major inflation', he added. Shares in Adidas were down 2.6% in premarket trade. The stock is already down 16% since the start of the year. Juventus extend Adidas partnership to 2037 in $468mn deal The U.S. earlier this month announced a 20% levy on many Vietnamese exports and a 19% tariff on goods from Indonesia. Vietnam and Indonesia, Adidas' two biggest sourcing countries, made up 27% and 19% of the company's products respectively as of 2024. Like many other sportswear companies including Puma , Adidas has frontloaded product purchases into the U.S. to try and beat tariffs, driving its inventories up 16% to 5.26 billion euros at the end of June. Net sales, adjusted for currency swings, rose 2.2% to 5.95 billion euros ($6.9 billion) in the quarter, lower than analysts' average estimate of 6.2 billion euros, according to data compiled by LSEG. But quarterly operating profit reached 546 million euros, ahead of analysts' expectations for 520 million euros, a sign that Adidas is selling more products at full price. Adidas' gross margin increased by 0.9 percentage points to 51.7% in the quarter, as reduced discounting and lower product and freight costs mitigated the impacts from currencies and tariffs. Adidas is also having to contend with a stronger euro and weaker dollar, which hit sales by around 300 million euros in the quarter through June.
Reuters
5 hours ago
- Business
- Reuters
Adidas shares drop after sales miss expectations, flags $231 mln tariff cost
July 30(Reuters) - Adidas ( opens new tab shares fell 7.5% in early trade on Wednesday after the sportswear brand's second-quarter sales missed expectations and it warned that higher U.S. tariffs would add around 200 million euros ($231 million) to its costs in the second half. Highlighting the impact of U.S. President Donald Trump's volatile trade policies, Adidas said uncertainty was holding it back from increasing its annual guidance despite reporting a stronger than expected second-quarter profit. "We still do not know what the final tariffs in the U.S. will be," CEO Bjorn Gulden said in a statement. Another unknown is the indirect impact on consumer demand if the tariffs cause "major inflation", he added. Net sales, adjusted for currency swings, rose 2.2% to 5.95 billion euros ($6.9 billion) in the quarter, lower than analysts' average estimate of 6.2 billion euros, according to data compiled by LSEG. The result will fuel fears that, after a run of very strong sales growth fuelled by its trending three-striped multicoloured Samba and Gazelle shoes, Adidas is losing momentum. "For investors to view this as a temporary setback, the company will need to deliver a reassuring message regarding the outlook for H2 and the early 2026 order book," UBS analyst Robert Krankowski said in a note to clients. The U.S. earlier this month announced a 20% levy on many Vietnamese exports and a 19% tariff on goods from Indonesia. Adidas' two biggest sourcing countries, Vietnam and Indonesia produced 27% and 19% of Adidas' products respectively as of 2024. Like many other sportswear companies, including Puma , Adidas has frontloaded product purchases into the U.S. to try to beat tariffs, driving its inventories up 16% to 5.26 billion euros at the end of June. Adidas is also having to contend with a stronger euro and weaker dollar, which hit sales by around 300 million euros in the quarter through June. Adidas' quarterly operating profit reached 546 million euros, ahead of analysts' expectations for 520 million. Its gross margin increased by 0.9 percentage points to 51.7% in the quarter, as reduced discounting and lower product and freight costs mitigated the impacts from currencies and tariffs. ($1 = 0.8651 euros)
