Adidas braces for $230M tariff hit in the back half of the year

With rival Nike working through sales declines and Puma just last week reporting a sales drop and a guidance cut, Adidas is capitalizing on the moment by kicking up marketing investments and letting others lead the way on price increases in the U.S.

“It is very, very important that you don’t run away from the lower price points and believe you can just raise prices and do less volume,” CEO Bjørn Gulden said on a call with analysts Wednesday. “The price increases that might come in the U.S. because of the tariffs should not have any impact on prices in any other market. We will not try to take the tariffs in the U.S. and then put them on the prices in Germany.”

Gulden alluded to the fact that Nike would likely lead price increases in the market and Adidas would follow, though the retailer intends to also share the costs of tariffs with suppliers and retailers. Adidas will also drop new products at higher prices than it otherwise would to offset the costs, which is an advantage in some ways since shoppers won’t know there’s been an increase.

“We have not canceled one order,” Gulden said, referencing others who have pulled back on inventory purchases in recent quarters. “We have not seen any cancellations yet from any retailers.”

Adidas braces for $230M tariff hit in the back half of the year | Retail Dive

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