Harley-Davidson, Hershey, Adidas, Mercedes warn of profit woes and tariff costs after US-EU 15% deal
American motorcycle mainstay Harley-Davidson announced a net income of $108 million, down from $218 million during the same period last year, missing analyst expectations.
The company also said it would hold off on providing guidance for the year, after withdrawing sales and profit forecasts in May in the face of the tariffs.
In the apparel sector, Adidas shared warnings of its own. The company announced more than $6.8 billion in sales, a 2.2 percent increase in year-on-year sales, though the figure missed analyst expectations.
While the company still expects an operating profit in 2025, it told investors Trump's tariffs could increase its costs by up to $231 million.
'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 on Wednesday. 'We feel the volatility and uncertainty in the world does not make this prudent.'
The company is weighing possible U.S. price increases, though it hasn't decided yet.
Though sales were up, operating profits were down 33 percent for chocolate giant Hershey compared with the second quarter of 2024.
The company said it expects adjusted earnings per share to decline between 36 and 38 percent, as the company confronts between $170 million and $189 million in tariff expenses, a roughly 10 times increase from its tariff cost estimates in May.
Mercedes, meanwhile, said tariffs would eat 1.5 percentage points into its operating margin, equivalent to $420 million in the second quarter.
The company will face levies as it imports vehicles to the U.S. from Mexico, China, and Europe, as well as input costs for importing parts to its Alabama vehicle factory.
During the second quarter, net profits were roughly $1.06 billion, down from $3.45 billion during the same period last year, as the company faces tariff headwinds and collapsing demand in China.
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