Adidas Navigates Uncertainty: Tariffs, Discounts, and Growth
Adidas struggles with nervous U.S. retailers ordering less due to tariffs, impacts of which cut into their North American sales. While adjusting strategies, including price hikes on premium items, demand for retro sneakers like the Samba remains strong. Looking for new growth avenues, Adidas eyes the running segment's potential.
The CEO of Adidas stated on Wednesday that U.S. retailers are 'nervous,' purchasing less upfront due to President Trump's tariffs, impacting American consumers. This uncertainty has led to widespread discounting, affecting both retailers and consumer behavior.
Adidas experienced a 5% dip in third-quarter sales in North America, their second-largest market, driven by a weak dollar. Despite this, the company achieved a 3% global revenue growth, though shares plummeted over 10%, marking the steepest drop since July.
CEO Bjorn Gulden informed stakeholders of flexible discounting and inventory clearance strategies impacting Adidas' full-price sales. As tariffs are projected to cut €120 million from profits, Adidas adjusts prices on high-end products while preserving affordability for lower-end goods, demonstrating resilience amid global economic challenges.
Google News