Latest news with #BjornGulden
Business Mayor
04-05-2025
- Business
- Business Mayor
Adidas warns of higher costs from US tariffs, confirms outlook
German sportswear maker Adidas confirmed its 2025 guidance on Tuesday, but said it expected the planned higher tariffs on imports into the United States to eventually raise the costs of all its products for the market. 'Although we had already reduced the China exports to the U.S. to a minimum, we are somewhat exposed to those currently very high tariffs,' CEO Bjorn Gulden said in a statement, highlighting the potential impact on the company from the general increase in tariffs from all other countries of origin. Unexpectedly high U.S. import levies on Southeast Asian countries such as Vietnam and Indonesia, now paused until July, have blindsided sportswear makers, which had relied on supplies from those countries to mitigate the impact of U.S. tariffs on goods from China. Adidas, which announced stronger-than-expected quarterly sales and profit in an unscheduled statement last week, said cost increases would eventually cause price hikes, but added that it was currently impossible to quantify those or to assess their impact on consumer demand for its products. Gulden said Adidas would have increased its outlook for the full year both for revenue and operating profit after a solid quarter and a strong order book, if it had not been for the uncertainty around the tariffs. READ SOURCE
Mint
29-04-2025
- Business
- Mint
Adidas freezes 2025 profit guidance amid Trump tariff-induced inflation risk; stock down 12% YTD
German sportswear maker Adidas held back on Tuesday from raising its 2025 financial forecasts despite strong first-quarter results, saying the uncertainty around U.S. import tariffs was making it difficult to make predictions and plan. CEO Bjorn Gulden said that "in a normal world" the company would have hiked its revenue and profit guidance after last week's quarterly results, but tariff uncertainty prevented it from doing so. Adidas share price is down 12 per cent year-to-date To mitigate the impact, Adidas front-loaded products to clear U.S. customs before tariffs that took effect on April 4 and April 9, and re-routed products made in China meant for the U.S. to other markets instead, Gulden said in a conference call with journalists. Adidas has not raised prices in the U.S. yet, but ran scenarios to assess where price increases in the U.S. would be possible to offset the tariffs, Gulden said, adding that it would watch what rivals do and aim not to be a "first mover" in hiking prices. The company also plans to compensate for uncertainty in the U.S. by boosting its performance in the rest of the world. "You could ironically say that not being so dependent on the U.S. now is an advantage for us compared to maybe companies that are more American," he said, a remark pointing to its bigger U.S. rival Nike. Shares in the company were down 2% by 1255 GMT. Adidas said the blanket 10% increase in U.S. tariffs will eventually cause price increases, but it is impossible to quantify those or the likely impact on U.S. consumer demand, highlighting the paralysis caused by trade uncertainty. The company had already reduced exports of China-made goods to the U.S. to a minimum, but is still "somewhat exposed" to much higher U.S. tariffs on Chinese goods, Gulden said, though it is unclear how long those might remain at the current level. "Given the uncertainty around the negotiations between the U.S. and the different exporting countries, we do not know what the final tariffs will be. Therefore, we cannot make any 'final' decisions on what to do," Gulden said. High U.S. tariffs on Southeast Asian countries such as Vietnam and Indonesia - announced on April 2, but paused until July - blindsided sportswear brands, which make most of their sneakers and clothing there. "We hope and work on the assumption that these higher duties will not come back," Gulden said in the press conference. First-quarter sales rose 14% in Europe and 13% in Greater China, where Gulden said Adidas is gaining market share from rivals. Sales in North America increased just 3%, which Adidas said was due to the phase-out of its Yeezy sneaker line. While sticking to its full-year guidance, Adidas said the range of possible outcomes was wider now and uncertainty could put negative pressure on its results later in the year. Adidas expects currency-neutral sales for 2025 to increase at a "high-single-digit" rate - between 7% and 9% - and operating profit to rise to between 1.7 billion euros and 1.8 billion euros ($1.94 billion-$2.05 billion). Sales of running shoes and clothes improved in the first quarter, Adidas said, as it tries to better compete against newer brands like On and Hoka that have gained in popularity at the expense of Nike and Adidas. Adidas-sponsored athletes won both the women's and the men's race at the London Marathon on Sunday, Gulden pointed out, helping boost the credentials of Adidas running shoes. ($1 = 0.8780 euros) (Reporting by Linda Pasquini in Gdansk and Helen Reid in London. Editing by Kirsten Donovan, Mark Potter and Jan Harvey) First Published: 29 Apr 2025, 10:50 PM IST
New York Times
29-04-2025
- Business
- New York Times
Adidas Warns Sneakers Will Cost More in the U.S. as Trump's Tariffs Take Effect
The German sportswear company Adidas said on Tuesday that the increase in tariffs would lead to higher prices for its sneakers and sportswear for U.S. customers. 'Since we currently cannot produce almost any of our products in the U.S., these higher tariffs will eventually cause higher costs for all our products for the U.S. market,' Bjorn Gulden, the company's chief executive, said Tuesday on a call with analysts. Mr. Gulden said Adidas had sent extra inventory to the United States to clear customs before tariffs took effect, but he added that the company would eventually feel President Trump's 10 percent base-line duty increase for all imports. 'Cost increases due to higher tariffs will eventually cause price increases,' he said. 'But it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products.' Adidas also rerouted some products that were made in China and destined for the United States to other markets, which are expected to become more important for the company in the wake of the growing trade war between the global superpowers. U.S. sales in the first three months of the year increased just 3 percent, because of the phasing out of the last sneakers in the popular Yeezy line, which were developed with the rapper Ye, formerly known as Kanye West, as part of a collaboration that ended in 2022. In Europe, sales increased 14 percent in the first three months of the year, while sales in China grew 13 percent. The company, which is based in Herzogenaurach in southern Germany, said that it was refraining from issuing a profit outlook for the full year, citing the unpredictability that tariffs have caused, which affect many countries, including Indonesia and Vietnam, where Adidas produces many of its shoes and sportswear. 'In a 'normal world,' Mr. Gulden said, the company's first-quarter results would have led it to raise the outlook for revenue and operating profit for 2025, but 'the uncertainty regarding the U.S. tariffs has currently put a stop to this.'
Western Telegraph
29-04-2025
- Business
- Western Telegraph
Adidas cautions over higher prices and halts outlook upgrade due to tariff woes
The German sportswear giant said prices will rise in the face of cost increases from US President Donald Trump's move to raise trade tariffs on goods imported into America, with US customers expected to see higher prices for all its products. Chief executive Bjorn Gulden said: '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.' In a 'normal world' with this strong quarter, the strong order book and in general a very positive attitude towards Adidas, we would have increased our outlook for the full year both for revenues and operating profit Bjorn Gulden, Adidas chief executive He added: '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.' The group said it would have hiked its full-year earnings outlook after a robust first quarter, but that it held off due to worries over the ultimate tariffs put in place and the impact on the group's sales. Mr Gulden said: 'In a 'normal world' with this strong quarter, the strong order book and in general a very positive attitude towards Adidas, we would have increased our outlook for the full year both for revenues and operating profit. 'The uncertainty regarding the US tariffs has currently put a stop to this.' It saw pre-tax earnings more than double to 585 million euros (£497.3 million) in the first quarter, up from 245 million euros (£208.3 million) a year ago, as revenues rose by 13% on a constant currency basis to 6.15 billion euros (£5.23 billion). The group is expected to be hit hard by the US tariff hikes as it makes many of its products in Asian countries, such as China and Vietnam, and is understood to be unable to shift production to the US due to a lack of specialised equipment and workers in America. As always, we will try to manoeuvre through this uncertainty in the most pragmatic, agile and flexible way Adidas It said that while it has cut back its exports to the US to a minimum, the wider increase in general US tariffs is 'even worse' for the group, as it affects its key sourcing markets. Adidas said: 'As always, we will try to manoeuvre through this uncertainty in the most pragmatic, agile and flexible way. 'We have all parts of the organisation involved and will do everything we can to assure that our US retail partners and our US consumers will get the Adidas product they want and to the best possible price.'
The Independent
29-04-2025
- Business
- The Independent
Adidas cautions over higher prices and halts outlook upgrade due to tariff woes
Adidas has warned over price hikes for its trainers due to higher tariffs and said the trade policy uncertainty has 'put a stop' to any earnings upgrade. The German sportswear giant said prices will rise in the face of cost increases from US President Donald Trump's move to raise trade tariffs on goods imported into America, with US customers expected to see higher prices for all its products. Chief executive Bjorn Gulden said: '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.' He added: '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.' The group said it would have hiked its full-year earnings outlook after a robust first quarter, but that it held off due to worries over the ultimate tariffs put in place and the impact on the group's sales. Mr Gulden said: 'In a 'normal world' with this strong quarter, the strong order book and in general a very positive attitude towards Adidas, we would have increased our outlook for the full year both for revenues and operating profit. 'The uncertainty regarding the US tariffs has currently put a stop to this.' It saw pre-tax earnings more than double to 585 million euros (£497.3 million) in the first quarter, up from 245 million euros (£208.3 million) a year ago, as revenues rose by 13% on a constant currency basis to 6.15 billion euros (£5.23 billion). The group is expected to be hit hard by the US tariff hikes as it makes many of its products in Asian countries, such as China and Vietnam, and is understood to be unable to shift production to the US due to a lack of specialised equipment and workers in America. It said that while it has cut back its exports to the US to a minimum, the wider increase in general US tariffs is 'even worse' for the group, as it affects its key sourcing markets. Adidas said: 'As always, we will try to manoeuvre through this uncertainty in the most pragmatic, agile and flexible way. 'We have all parts of the organisation involved and will do everything we can to assure that our US retail partners and our US consumers will get the Adidas product they want and to the best possible price.'
