{"id":42072,"date":"2025-07-30T11:36:20","date_gmt":"2025-07-30T11:36:20","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/30\/adidas-shares-slump-after-sales-miss-tariff-warning-and-guidance-confirmation\/"},"modified":"2025-07-30T11:36:20","modified_gmt":"2025-07-30T11:36:20","slug":"adidas-shares-slump-after-sales-miss-tariff-warning-and-guidance-confirmation","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/30\/adidas-shares-slump-after-sales-miss-tariff-warning-and-guidance-confirmation\/","title":{"rendered":"Adidas shares slump after sales miss, tariff warning and guidance confirmation"},"content":{"rendered":"
<\/div>\n

Adidas shares tumbled on Wednesday after the German sportswear giant reported second-quarter sales below expectations and warned that new US tariffs would significantly raise costs in the second half of the year. <\/p>\n

Despite a solid rise in profit, the company opted to maintain its annual guidance, citing global volatility and uncertainty.<\/p>\n

The stock fell as much as 8.9% in early European trading, extending its year-to-date decline to 24%. <\/p>\n

At 10:46 am, the stock was down by 6.2% in Frankfurt.<\/p>\n

The sharp drop came after Adidas said President Donald Trump\u2019s renewed tariffs could increase the cost of its US products by up to 200 million euros ($231 million) over the remainder of the year.<\/p>\n

“The year has started great for us, and normally we would now be very bullish in our outlook for the full year,” Chief Executive Bjorn Gulden said.<\/p>\n

“We feel the volatility and uncertainty in the world do not make this prudent.”<\/p>\n

Profit jumps, but sales miss market expectations<\/h2>\n

For the quarter ended June, Adidas posted revenue of 5.95 billion euros, a 2.2% increase compared to the same period last year. <\/p>\n

However, this fell short of analysts\u2019 expectations of 6.15 billion euros.<\/p>\n

Operating profit rose nearly 58% to 546 million euros, ahead of the 520 million euros expected by analysts, according to LSEG data. <\/p>\n

Net income climbed to 369 million euros from 190 million euros a year earlier. <\/p>\n

The company\u2019s gross margin also improved by 0.9 percentage points to 51.7%, driven by lower discounting and falling freight and production costs.<\/p>\n

Despite the robust profit figures, analysts flagged disappointment over Adidas not upgrading its full-year forecast. <\/p>\n

\u201cThis could cause some disappointment as the market expected an uplift of the group\u2019s operating profit guidance,\u201d said Volker Bosse, analyst at Baader Helvea.<\/p>\n

Adidas maintained its 2025 outlook, projecting operating profit between 1.7 billion and 1.8 billion euros and targeting high single-digit growth in currency-neutral sales.<\/p>\n

Tariffs and currency effects weigh on outlook, CEO says US price increases a possibility<\/h2>\n

The decision to keep guidance flat comes amid growing concerns over the impact of fresh US trade measures. <\/p>\n

Earlier this month, the US imposed a 20% tariff on many goods from Vietnam and a 19% levy on products from Indonesia\u2014Adidas’ two largest sourcing countries, which accounted for a combined 46% of its production in 2024.<\/p>\n

These new tariffs have already impacted Adidas’ second-quarter results by what the company described as a “double-digit million euro” figure. <\/p>\n

The full effect is expected to materialise in the coming months, further squeezing margins.<\/p>\n

Gulden said there will be a pricing review with final duties, but price increases, if any, will only be implemented in the US.<\/p>\n

Meanwhile, a stronger euro and weaker dollar also dented revenue, with currency fluctuations reducing sales by around 300 million euros in the June quarter. <\/p>\n

Inventories rose 16% to 5.26 billion euros, partly due to the company frontloading shipments to the US to beat tariff deadlines.<\/p>\n

Investors will eye H2 outlook and 2026 orderbook for reassurance: analysts<\/h2>\n

Investors reacted sharply to the mixed update. <\/p>\n

“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.<\/p>\n

Analysts at Jefferies added that the underlying turbulence in the wholesale orderbook would be closely watched, particularly in light of Adidas’ reluctance to revise its outlook despite strong Q2 earnings.<\/p>\n

Market peers also felt the ripple effects. Shares in British retailer JD Sports, a key Adidas partner, declined 1.9% following the announcement. <\/p>\n

JD\u2019s own stock has dropped nearly 9% year-to-date, partly reflecting pressure across the sector.<\/p>\n

While Adidas has shown resilience in cost management and operational efficiency, the months ahead may prove more challenging. <\/p>\n

With tariffs increasing input costs and macroeconomic volatility clouding forecasts, investors will be looking for clarity in the company’s next update.<\/p>\n

The post Adidas shares slump after sales miss, tariff warning and guidance confirmation<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Adidas shares tumbled on Wednesday after the German sportswear giant reported second-quarter sales below expectations and warned that new US tariffs would significantly raise costs in the second half of the year. Despite a solid rise in profit, the company opted to maintain its annual guidance, citing global volatility and uncertainty. The stock fell as <\/p>\n","protected":false},"author":1,"featured_media":42073,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-42072","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=42072"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/42073"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=42072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=42072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=42072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}