Adidas, the world’s second-largest sportswear brand, reported a solid profit jump in the second quarter of 2025 but flagged growing concerns over U.S. tariffs and global economic uncertainty.
The German sportswear giant said tariffs introduced by U.S. President Donald Trump led to a financial hit in the “double-digit million euros” range between April and June. Looking ahead, these duties could add €200 million ($230 million) in costs for the second half of the year.
While Adidas hasn’t confirmed if it will raise prices for consumers, CEO Bjorn Gulden warned of potential inflationary effects that could impact demand. “We still don’t know the final shape of the U.S. tariffs,” Gulden noted.
Despite the trade tensions, Adidas posted a 90% rise in quarterly profits, driven by strong demand for its classic and lifestyle footwear. Net profit climbed to €369 million, up from €190 million a year earlier. Sales also rose slightly to €5.9 billion.
The company is maintaining its 2025 forecast, projecting annual operating profits of €1.7 to €1.8 billion, while cautioning that the volatile trade climate could swing results either way.
Adidas has worked to rebuild its brand following its high-profile fallout with Kanye West in 2022. Under Gulden’s leadership, the focus has shifted back to heritage sneakers and core performance products.
With a global supply chain spanning tariff-affected countries like Vietnam and Indonesia, Adidas continues to monitor trade policy developments closely.
