Adidas Shares Tumble After Sales Miss and Tariff Warning
Adidas shares dropped significantly on July 30, 2025, falling as much as 8.9% in early European trading after the German sportswear company reported second-quarter sales that missed analyst expectations. The company posted revenues of €5.95 billion ($6.9 billion) for the quarter, representing a 2% year-over-year increase, but falling short of the €6.23 billion consensus forecast by analysts. Despite the sales disappointment, operating profit rose 58% annually to €546 million, beating the expected €518 million.
The company maintained its full-year guidance, projecting operating profit between €1.7 billion and €1.8 billion and targeting high single-digit growth in currency-neutral sales, though this guidance fell below consensus expectations of €2.085 billion in operating profit. CEO Bjorn Gulden warned that President Trump's tariffs could increase the cost of Adidas products in the U.S. by up to €200 million ($231 million) during the remainder of the year, citing the impact of new 20% tariffs on Vietnamese goods and 19% tariffs on Indonesian products—two countries that accounted for 46% of Adidas' production in 2024. The stock extended its year-to-date decline to 24% following the announcement.
