Adidas warns Trump tariffs will put up US shoe prices

The Guardian

29-04-2025

Adidas has said the price of its popular trainers including Samba and Campus models is likely to rise as a result of Donald Trump's tariffs.
The German group said the uncertainty around US import tariffs had prevented it from raising its outlook for sales and profit this year despite reporting strong first-quarter results.
'Since we currently cannot produce almost any of our products in the US, these higher tariffs will eventually cause higher costs for all our products for the US market,' said Adidas's chief executive, Bjørn Gulden. 'Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be.'
Fashion brands, and especially sports shoe producers such as Adidas, will be hit by the introduction of tariffs as the bulk of their products are made in countries including Vietnam, Indonesia and China.
Known for its trademark three-stripe logo, Adidas's Samba trainers retail for about £70 in the UK.
The company said it was exposed to 'currently very high tariffs' even though it had already reduced exports from China to the US as a result of the introduction of tariffs on goods made in all other countries of origin.
Gulden said: 'Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products.'
While Adidas has diversified its supply chain, it may face steeper challenges when raising its prices than some of its competitors, according to analysts.
'Our analysis suggests the brand operates in a tighter price elasticity environment, particularly in its core footwear lines like the Superstar or Gazelle,' said Yanmei Tang, an analyst at Third Bridge. 'With potential tariffs pushing production costs higher, Adidas lacks the same headroom as competitors such as Nike or Hoka, whose consumers are more accustomed to premium pricing.'
Earlier in April, Adidas reported a 17% rise in total sales for the first quarter of the year, while sales and profit beat expectations.
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Its operating profit between January and March jumped 82% year on year to €610m (£519m) thanks to strong sales of its lifestyle products, including new animal and floral print versions of its Samba trainers, the model worn by the former prime minister Rishi Sunak among others.
Gulden is credited with turning around Adidas since the brand cut ties with Kanye West in 2022, scrapping its lucrative Yeezy line of sneakers. The group confirmed on Tuesday that it had sold the remainder of its Yeezy stock at the end of 2024.