Latest news with #Gulden
Yahoo
23-05-2025
- Business
- Yahoo
‘Unprecedented Threat': Outdoor Brands to Raise Prices If Trump Tariffs Continue
Cotopaxi. Wild Rye. Hydro Flask. Adidas. Osprey. What do these outdoor brands have in common? They're all telling their customers that President Donald Trump's tariffs will mean higher prices on outdoor gear. Since Trump raised taxes on imports from around the world, especially China, the U.S. economy has struggled to adjust to a new trade reality. That includes many of the biggest brands in the outdoor industry, which have begun speaking out about the impact of Trump's ongoing trade war on their bottom line. Over the last week, all the brands named above have warned their customers to expect higher prices on their shoes, apparel, packs, and other outdoor gear. Many of them make and ship those products from China, where Trump's combined tariffs can reach 145% for U.S. imports. Several of the brands above still haven't raised prices. But if Trump doesn't pull back on the tariffs soon, prices will have to go up, they said. 'As of today, duties (aka tariffs) for our goods have gone from 30% to 159%,' Wild Rye founder Cassie Abel said in a statement. 'While the exact numbers and timelines are still evolving, the TLDR version is that if these stick, manufacturing apparel will get more expensive in the near future, making it harder for smaller businesses like ours to stay competitive and for consumers to access the quality products they love at fair prices.' Many brands have announced a future of higher-priced gear. However, few of those companies are willing to say just how expensive things could get. That's because making plans is difficult in such an uncertain political environment, according to adidas CEO Bjørn Gulden. Despite a 'volatile environment,' adidas reported double-digit growth in the first quarter of 2025, Gulden said in a statement. But he still couldn't justify increasing the financial outlook for adidas for the rest of the year. '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,' Gulden said. 'Therefore, we cannot make any 'final' decisions on what to do.' '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 impact of Trump's tariffs is much greater on medium and smaller brands than on corporate giants like adidas. Executives at Helen of Troy, parent company of Osprey and Hydro Flask, have said that the chaotic trade policies of the U.S. mean the company can no longer forecast 2026 fiscal results. As a result, it's abandoning its long-term strategy, according to a news release on the company's website. Many smaller, growing brands — like Outdoor Element, an outdoor knives and multitool maker — are already reducing their workforce and pausing production, Shop Eat Surf x Outdoor reported. And Jen Rainnie, CEO of Canada-based outdoor brand Malvados, said she's had to pause nearly all wholesale orders from China to the U.S. 'The level of uncertainty right now is overwhelming — especially with the lack of clear, consistent information to help us navigate the situation,' she told Shop Eat Surf x Outdoor. Outdoor industry executives plan to voice their concerns to Congress this week through a Capitol Summit organized by the Outdoor Industry Association (OIA). That includes Cotopaxi CEO Lindsay Shumlas. In a letter to customers, she wrote that she would lobby Congress 'to help legislators understand the impacts of tariffs to businesses, products, and people.' OIA President Kent Ebersole agreed that the 'stakes remain high' for the outdoor industry. In a letter posted on the OIA website, Ebersole wrote that trade instability and threats to public lands represent 'unprecedented threats.' 'The challenges our industry faces are putting existential pressure on businesses,' Ebersole wrote. 'That's why our focus now is urgent and business-critical. Whether we're calling for balanced trade policy, stronger protections for public lands, or a well-resourced federal workforce to steward the places we love, we're not just advocating — we're shaping the future of the outdoor industry.' Outdoor brands aren't the only U.S. industry calling for immediate changes to Trump's trade policy. U.S. Treasury Secretary Scott Bessent called Trump's policies regarding the trade war with China 'unsustainable' and expected a 'de-escalation,' he told The Associated Press this week. It remains unclear, however, if Trump will actually pull back. And telling customers that Trump's tariffs are raising prices comes with its own risk of reprisals. When anonymous reports surfaced that e-commerce giant Amazon would display the exact cost of tariff-related price increases alongside its products, the White House responded immediately. Press Secretary Karoline Leavitt called it a 'hostile and political act.' Jeff Bezos, the Amazon founder and a prominent backer of Trump's 2024 campaign, denied any plans to display increased prices from the tariffs. Outdoor Industry Confronts 'Scary' Future of Higher Tariffs
Yahoo
19-05-2025
- Business
- Yahoo
Adidas CEO: Company will raise prices due to tariffs, can't make products in US
Iconic sportswear and footwear giant Adidas said Tuesday that the price of all its products will rise in the U.S. due to President Donald Trump's tariffs. "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," CEO Bjørn Gulden said in a statement on the German company's first quarter results released April 29. The brand, best known for sneakers like the Adidas Sambas and Ultraboosts, sources and manufactures many of its products and product components from countries like China, Vietnam, Indonesia, India and Cambodia. China is currently still saddled with a 145% import tariff, and the others were slated for tariffs ranging from 26% to 49% before Trump's 90-day pause initiated on April 9. In the meantime, the blanket 10% levied against most countries still has an impact on business, Gulden said. "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. What is even worse for us is the general increase in U.S. tariffs from all other countries of origin," he said in the April 29 statement. "Cost increases due to higher tariffs will eventually cause price increases." Parental woes: How tariffs could affect baby formula, diapers and other essentials Gulden said the company would not be sharing a year-ahead profit outlook due to the volatility of the current market, despite a "great" quarter. In the U.S., sales were up just 3% in the first three months of the year, when including the winddown of the sale of Yeezys due to the brand's terminated partnership with Kanye West. That number went up to 13% when excluding the Yeezy line. Sales were also up 26% in Latin America, 14% in Europe, and 13% in China, Japan, and South Korea, said the quarterly review. Net sales climbed 12.7% while operating margins rose 3.8 points to 9.9%, bringing the company's total operating profit to 610 million Euros ($695 million USD) in the first quarter. That's an 82% increase. Gulden said that despite the overall positive picture, it's currently "impossible" to quantify or conclude what impact tariff uncertainty will have on consumers. "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," Gulden said. "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." He added: "Therefore, we cannot make any 'final' decisions on what to do." This article originally appeared on USA TODAY: Adidas CEO: Company to raise prices in wake of Trump's tariffs Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Adidas halts use of controversial Aussie product in shoes
Animal rights campaigners are claiming victory after Adidas announced it was no longer using leather harvested from wild Australian kangaroos. Pressure had been mounting on the German-based sporting manufacturer to cease using the product in its soccer boots because of animal welfare concerns. United States-based Center for a Humane Economy has run a high-profile campaign, highlighting concerns about a lack of oversight when kangaroos are shot, and that joeys are considered collateral and bludgeoned to death. In 2023, Puma, Nike and New Balance abandoned the product, commercially known as K-leather, and switched to synthetic alternatives, which they said were superior. Speaking to Yahoo News from Frankfurt on Friday night, Center for a Humane Economy president Wayne Pacelle said the company's sudden announcement came as a 'surprise', but it was welcome. 'It was time for this very strong global brand to divorce itself from the largest massacre of terrestrial wildlife in the world,' he said. While Adidas used a small amount of leather in its shoes, a decision from such a high profile company is set to be a blow to the industry's morale. Advocates of wild kangaroo harvesting claim their product is more sustainable than farmed alternatives like cow leather and that the animals are harvested sustainably. The Australian Wild Game Industry Council argues shooters kill in a way that "minimises pain, suffering and distress". "The methods for the euthanasia of joeys in instances where they are unintentionally orphaned are also based on scientific research into kangaroo behaviour and ecology," it maintains. Adidas CEO Bjørn Gulden announced the decision on May 15 at the company's Annual General Meeting in Fürth, Germany. 'The good news is that we don't need to discuss this anymore because we haven't bought any kangaroo leather since August last year,' he said in German before confirming an end to future production. In video of the speech, seen by Yahoo News, members of the 250-person strong crowd can then be heard erupting in applause. Gulden's announcement followed a 6-minute address by Pacelle, who had travelled from Washington to address the board. Dressed in a suit and tie, and standing at the podium, he delivered what he "hoped" would be a 'very rational argument' on animal welfare and why choices made by large commercial brands like Adidas matter. Continuing, he claimed the conditions of the slaughter did not meet Adidas's own animal welfare standards, and that shooting them to make football boots was 'no longer acceptable in the 21st century'. 'We don't need to use kangaroo leather, it is completely unnecessary. If we take an honest look at what's happening with these animals, we know that this is no longer justifiable,' he added, before reminding the board that in the United States, animal welfare has more donors than any other cause. Following Pacelle's speech, Gulden denied Adidas's decision to stop using kangaroo leather was influenced by Center for a Humane Economy's campaign, or that kangaroos were directly shot to make shoes. 'We don't agree on the matter because you know the meat industry is responsible for regulating the population,' he said in German. 'Shoe production uses waste products, so we'll see now because I hope you come every year, and then we can see if it improves just because we don't make the shoes.' Speaking later with Yahoo, Gulden said leather was a valuable component of what makes kangaroo shooting viable, noting the flesh is not sold at a high price, with much of it used as pet food. He was "baffled" as to why Adidas took so long to make the announcement, given K-leather hadn't been purchased since last year. Protests had been ongoing at stores across the United States, with activists entering shops with placards and calling on the company to abandon its use of kangaroo. "These have created a lot of clamour within the company, and it is definitely behind Nike in the United States, which is definitely an important market," Gulden said. Kangaroo continues to be used in luxury handbags and boots, and by Japanese sporting goods manufacturers Mizuno and ASICS. Center for a Humane Economy is now turning its attention to these shoe brands, and will work to fight any industry expansion into other international markets like China. Animal welfare groups around the world have celebrated Adidas's announcement, which was the most high-profile sporting company to continue selling K-leather boots. Center for a Humane Economy's director of international programs Jennifer Skiff told Yahoo that today had been 'a good day'. Speaking after the AGM she said, 'Adidas's decision marks a historic milestone in animal protection and corporate responsibility. This sends a clear message: compassion is not a compromise. Cruelty has no place in commerce.' Donny Moss from TheirTurn, a group that led dozens of protests in Adidas, said, 'This win belongs to every advocate who stood outside a store, signed a petition, or raised their voice'. In Australia, Animal Justice Party MP Emma Hurst celebrated the decision, calling it a win for 'transparency, ethics, and global consumer expectations'. 'Australians and animal lovers worldwide owe a great deal to the relentless work of the Center for a Humane Economy and the global coalition that made this possible,' she said. Alyssa Wormald from the Victorian Kangaroo Alliance said it's time for leaders in Australia to see the "writing on the wall" and realise the kangaroo harvesting industry is "dying". "We know the reduced demand for kangaroo products is hitting the kangaroo industry hard. Very few processors are buying carcasses, so shooters are packing it in, and there is no incentive for new shooters to get involved," she said. Adidas has been contacted for comment. Love Australia's weird and wonderful environment? 🐊🦘😳 Get our new newsletter showcasing the week's best stories.
Fashion Network
16-05-2025
- Business
- Fashion Network
Adidas CEO says lion's share of job cuts at HQ complete
Adidas has completed the majority of planned cuts to its workforce at the German sportswear retailer's headquarters outside Munich, CEO Bjoern Gulden told shareholders on Thursday. "We are two thirds of the way through," Gulden said at the company's annual general meeting. He said the cuts were intended to increase efficiency, adding, "We sometimes had business models with functions that were doubled or tripled up." © Thomson Reuters 2025 All rights reserved.
Fashion Network
16-05-2025
- Business
- Fashion Network
Adidas CEO says lion's share of job cuts at HQ complete
Adidas has completed the majority of planned cuts to its workforce at the German sportswear retailer's headquarters outside Munich, CEO Bjoern Gulden told shareholders on Thursday. "We are two thirds of the way through," Gulden said at the company's annual general meeting. He said the cuts were intended to increase efficiency, adding, "We sometimes had business models with functions that were doubled or tripled up." © Thomson Reuters 2025 All rights reserved.
