Adidas Navigates U.S. Tariffs with Price Strategy and Supply Chain Shifts

Adidas faces a challenging market landscape in North America, with third-quarter sales falling 5% as U.S. tariffs and a strong euro impact revenue. Despite these hurdles, global sales reached a record 6.63 billion euros, marking a 3% increase from previous figures.

CEO Bjorn Gulden outlined Adidas' strategy to counteract tariff effects through selective price hikes and altering supply chains. Notably, the firm refrained from raising prices on cheaper products to avoid alienating price-sensitive consumers. A key example is the Samba sneaker, which saw its price increase from $90 to $100.

Though the company navigates ongoing challenges, including recovering from the Yeezy brand fallout, there is growth in segments like running shoes, reflecting strategic investments in high-tech innovations and athlete partnerships. Adidas continues to adapt and find new avenues for growth in a fluctuating market environment.