Latest news with #Gazelle
RTÉ News
17 hours ago
- Business
- RTÉ News
Adidas shares drop after sales miss expectations, flags €200m tariff cost
Adidas shares fell 7.5% in early trade today after the sportswear brand's second-quarter sales missed expectations and it warned that higher US tariffs would add around €200m to its costs in the second half. Highlighting the impact of US President Donald Trump's volatile trade policies, Adidas said uncertainty was holding it back from increasing its annual guidance despite reporting a stronger than expected second-quarter profit. "We still do not know what the final tariffs in the US will be," CEO Bjorn Gulden said in a statement. Another unknown is the indirect impact on consumer demand if the tariffs cause "major inflation", he added. The company's net sales, adjusted for currency swings, rose 2.2% to €5.95 billion in the quarter, lower than analysts' average estimate of €6.2 billion, according to data compiled by LSEG. The result will fuel fears that, after a run of very strong sales growth fuelled by its trending three-striped multicoloured Samba and Gazelle shoes, Adidas is losing momentum. "For investors to view this as a temporary setback, the company will need to deliver a reassuring message regarding the outlook for H2 and the early 2026 order book," UBS analyst Robert Krankowski said in a note to clients. The US earlier this month announced a 20% levy on many Vietnamese exports and a 19% tariff on goods from Indonesia. Adidas' two biggest sourcing countries, Vietnam and Indonesia produced 27% and 19% of Adidas' products respectively as of 2024. Like many other sportswear companies, including Puma, Adidas has frontloaded product purchases into the US to try to beat tariffs, driving its inventories up 16% to €5.26 billion at the end of June. Adidas is also having to contend with a stronger euro and weaker dollar, which hit sales by around €300m in the quarter to June. Adidas' quarterly operating profit reached €546m, ahead of analysts' expectations for €520m. Its gross margin increased by 0.9 percentage points to 51.7% in the quarter, as reduced discounting and lower product and freight costs mitigated the impacts from currencies and tariffs.
Reuters
a day ago
- Business
- Reuters
Adidas shares drop after sales miss expectations, flags $231 mln tariff cost
July 30(Reuters) - Adidas ( opens new tab shares fell 7.5% in early trade on Wednesday after the sportswear brand's second-quarter sales missed expectations and it warned that higher U.S. tariffs would add around 200 million euros ($231 million) to its costs in the second half. Highlighting the impact of U.S. President Donald Trump's volatile trade policies, Adidas said uncertainty was holding it back from increasing its annual guidance despite reporting a stronger than expected second-quarter profit. "We still do not know what the final tariffs in the U.S. will be," CEO Bjorn Gulden said in a statement. Another unknown is the indirect impact on consumer demand if the tariffs cause "major inflation", he added. Net sales, adjusted for currency swings, rose 2.2% to 5.95 billion euros ($6.9 billion) in the quarter, lower than analysts' average estimate of 6.2 billion euros, according to data compiled by LSEG. The result will fuel fears that, after a run of very strong sales growth fuelled by its trending three-striped multicoloured Samba and Gazelle shoes, Adidas is losing momentum. "For investors to view this as a temporary setback, the company will need to deliver a reassuring message regarding the outlook for H2 and the early 2026 order book," UBS analyst Robert Krankowski said in a note to clients. The U.S. earlier this month announced a 20% levy on many Vietnamese exports and a 19% tariff on goods from Indonesia. Adidas' two biggest sourcing countries, Vietnam and Indonesia produced 27% and 19% of Adidas' products respectively as of 2024. Like many other sportswear companies, including Puma , Adidas has frontloaded product purchases into the U.S. to try to beat tariffs, driving its inventories up 16% to 5.26 billion euros at the end of June. Adidas is also having to contend with a stronger euro and weaker dollar, which hit sales by around 300 million euros in the quarter through June. Adidas' quarterly operating profit reached 546 million euros, ahead of analysts' expectations for 520 million. Its gross margin increased by 0.9 percentage points to 51.7% in the quarter, as reduced discounting and lower product and freight costs mitigated the impacts from currencies and tariffs. ($1 = 0.8651 euros)
Fashion United
2 days ago
- Business
- Fashion United
Adidas business continues to perform well
Adidas is currently on a roll. The brand with the three stripes is enjoying consistently high demand. Sales are increasing by double digits despite the current challenging environment. Adidas is particularly successful with its retro styles. "Samba, Gazelle" and "Stan Smith" are bestsellers worldwide. The first quarter performed better than expected. However, US customs policy prevented CEO Bjorn Gulden from following previous trends and raising his forecast for the current year. Company expectations For 2025, Adidas continues to expect a currency-neutral increase in sales in the high single-digit percentage range. The Adidas brand is expected to grow by double digits. Operating profit should increase to between 1.7 and 1.8 billion euros, up from 1.3 billion euros in the previous year. In the second quarter, US tariffs are likely to have only a minor impact on US business. However, this impact is expected in the following quarter, Gulden recently announced. The Nike rival generates about 20 percent of its business in the US. Above all, tariffs on key manufacturing countries such as Vietnam and China are likely to drive up costs. New statements are therefore expected on how Adidas will react to this. This was still open at the presentation of the figures for the first quarter at the end of April. However, Gulden did not rule out price increases. Analyst expectations Analysts are positive. Jorg Philipp Frey of Warburg Research anticipates another strong quarter with strong brand momentum and double-digit percentage growth. The margin improvements in recent quarters have reduced the risks for the outlook. Adam Cochrane of Deutsche Bank sees a chance that Adidas could again exceed expectations and become more optimistic looking ahead. Baader Bank expert Volker Bosse was somewhat more cautious. He refers to the US tariffs. The trade agreement between the US and Vietnam is likely to increase costs for Adidas and ultimately sales prices in the US. This could depress sales there. Thanks to the great popularity of the Adidas brand, the lifestyle group is likely to achieve its financial targets, he estimates. Aneesha Sherman of the US analysis firm Bernstein also noted that the growth of sporting goods manufacturers in China is likely to remain subdued. In a consensus provided by the news agency Bloomberg, analysts expect sales to increase to an average of 6.2 billion euros, up from 5.8 billion in the previous year. The operating result is likely to improve to around 503 million euros. Here, analysts are above Adidas' forecast for 2025, with an estimate of around two billion euros.
Mint
6 days ago
- Business
- Mint
Puma Slashes Outlook as New CEO Confronts Weak Demand, Tariffs
(Bloomberg) -- Puma SE slashed its earnings forecast for the year amid strikingly weak demand for its sports and athleisure products and growing concerns about the potential impacts of US tariffs. The German company now expects to report a loss in adjusted earnings before interest and taxes this year, according to a statement late Thursday that showed disappointing preliminary second-quarter results. That's a marked downgrade from Puma's previous target, which called for profits by that metric to reach a range of €520 million ($611 million) and €600 million. It's also far below the average analyst estimate, which foresaw a €489 million gain for the year. Puma cited weaker sales in North America, Europe and Greater China during the second quarter and said that trajectory will probably continue through the rest of year, causing high inventory levels. The company missed estimates on both sales and profit in the second quarter. It now expects currency-adjusted sales to decline by a low double-digit percentage this year. The previous forecast called for growth in the low- to mid-single-digit percentage range. The company anticipates US tariffs to hurt gross profits this year by about €80 million. Since arriving at Puma on July 1, Chief Executive Officer Arthur Hoeld is looking to reset a brand that's struggled in recent years to connect with consumers. The Adidas veteran took over after Puma's former CEO Arne Freundt left following a string of profit warnings and a disagreement with the supervisory board over the company's strategy. Puma was banking much of its performance this year on being able to sell between four and six million pairs of the thin-soled Speedcat sneaker and related models like the Ballet shoes. That push was part of Freundt's broader effort to deepen Puma's profile on higher-end sneakers and sports gear. Puma has struggled in recent years to roll out a product that's capturing the zeitgeist. Meanwhile, cross-town rival Adidas has excelled at that, especially with its retro Samba and Gazelle sneakers. Hoeld helped oversee the rollout of those shoes while at Adidas earlier this decade. More stories like this are available on
CNET
7 days ago
- CNET
Apple's and Samsung's Warning: The Truth About Putting Wet Phones in Rice
Summer is full of beach vacations and lounging near the pool. But if you drop your phone into water, you may be facing an expensive trip to a phone store. While many smartphones are water-resistant, that doesn't mean they're waterproof, so it's still important to dry out your phone. Here are a few ways to get your phone dry after dropping it in water or getting it dirty. Hopefully these tips can help save you from having to buy a new phone. None of these methods are guaranteed to work, however, and while there's a lot of anecdotal evidence, there are very few scientific studies on the subject. The most recent study we could find was from 2014 by Gazelle, a company that buys and sells used and broken phones. According to that study, the make and model of phone were found to influence whether a phone could return to working order, with Android phones typically faring better than iPhones. Phone manufacturers agree that removing your phone from water as quickly as possible helps to minimize how much water comes into contact with your device. That means you have a better chance of saving your phone but don't put your phone in rice after removing it from water because that could damage it. Here's what you should do if you drop your phone in water. If you follow these instructions and your phone won't turn on, or it turns on and has some issues, you should take it to an associated phone shop to see if they can help. What Apple and Samsung recommend The two biggest phone manufacturers have some tips in case you drop your phone in water. Apple says that many iPhones are splash, water and dust resistant when tested in controlled lab environments, but these resistances aren't permanent. If your iPhone gets wet, it might display a warning that there's water in your phone's charging port. If you see this warning, or your iPhone comes into contact with water, lotions, soap or other potentially hazardous material, here's what Apple says to do: 1. After removing your iPhone from the material, turn it off and dry it with a soft, lint-free cloth. 2. Tap your phone gently with the charging port facing down to get excess water out of the port. 3. Place your iPhone in a dry area with good circulation and wait at least five hours. Pointing a fan at your iPhone's charging port might help the process. After five hours, try turning your iPhone back on and plugging it back in. If you're still having issues, you can try the other methods mentioned in this article, or you can take your phone to an Apple store for further assistance. Apple also says don't put your iPhone in rice. "Doing so could allow small particles of rice to damage your iPhone," the company writes online. Drop your smartphone in water? Don't has similar instructions for drying your phone: 1. Remove your phone from the water, turn it off and dry it off with a dry towel or a clean cloth. 2. Place your phone in a well-ventilated area or in the shade with cool air from a fan. Samsung doesn't specify a length of time to wait, though. Samsung says even after you've followed these steps that there might still be water inside your phone so you should bring it to a Samsung Electronics Service Center. Both manufacturers also say if you drop your phone in a liquid other than clean water -- like soda or pool water -- you should quickly rinse your phone using tap water before drying with a towel and then air drying. Apple and Samsung say to never use a heating source, like a blow dryer or oven, to dry off your phone. The heat could damage it. Silica gel beads could help You could also try silica gel. According to Gazelle, silica gel beads are a good option to absorb moisture out of phones. Silica gel beads can be found in those white packs labeled "Do not eat" that many products come packed with. You can save these packs from packages you've received, or buy packs through online stores like Amazon or companies like Dry & Dry. Once you have your silica, here's what to do after dropping your phone in water: 1. Get your phone out of the water and turn it off. 2. Dry the outside of your phone with a lint-free towel. 3. Place your phone in a large container. 4. Fill the container with your silica gel beads and seal the container. 5. Gazelle recommends waiting 72 hours to let your phone dry. 6. Remove your phone from the container and try turning it back on. Other household items might help If you don't have silica gel beads on hand, you could try other household items. Gazelle found couscous and instant rice both work well as drying agents. Follow the steps in the above section, but replace the silica beads with either of these, wait for the same amount of time and then try restarting your device. Gazelle also tested conventional cat litter, oats, chia seeds and uncooked white rice but doesn't recommend these products because they leave behind debris that could damage your phone. For more tips, check out how low-frequency sounds can get rid of water from your phone's speakers, how to get two days out of a single iPhone charge and how to easily manage your Android permissions.
