Adidas confirms 2025 outlook but warns of U.S. tariff-driven cost increases

Adidas confirmed its 2025 outlook on Tuesday after posting a strong rise in first-quarter profits but warned that new U.S. tariffs could increase costs across its product lines in the American market.

The German sportswear giant reported a group net income from continuing operations of 428 million euros for the January–March period, more than doubling from the 162 million euros recorded a year earlier.

Analysts surveyed by FactSet had expected around 383 million euros. First-quarter sales rose by 8% in constant currencies to 6.15 billion euros, with strong performances in Europe, which was up 14%, and in China, which was up 13%. Growth in North America was more modest at 3%, held back by the cessation of the Yeezy line; without this impact, Adidas said growth would have reached 13% in the region.

Despite this better-than-expected start to the year, Adidas decided to maintain its full-year guidance. “In a normal world, we would have raised our outlook, but the tariff uncertainties are holding us back,” the company said.

Adidas projects an operating profit between €1.7 billion and €1.8 billion for 2025, up from €1.3 billion in 2024, and expects revenue growth to reach the higher end of a mid-single-digit percentage range.

The company cautioned that although it has reduced exports from China to the U.S., a significant portion of its American inventory still comes from Vietnam, Indonesia, and Bangladesh—countries now subject to higher U.S. tariffs. As a result, Adidas anticipates increased production costs, which it plans to offset by raising prices. However, it acknowledged that the full impact on consumer demand remains difficult to predict.

Adidas is also moving ahead with a previously announced workforce reduction plan at its Herzogenaurach headquarters, which aims to cut about 500 positions to streamline operations.

The company had already shared preliminary first-quarter results on April 23, revealing a positive momentum, but officials stressed that ongoing geopolitical tensions and trade measures make the business environment volatile.

FashionNetwork.com with AFP and Reuters.