Impact of U.S. Tariffs on Adidas AG’s 2025 Financial Outlook
Adidas AG, a German consumer‑discretionary company listed on Xetra and valued at approximately €33.2 billion, has confirmed that U.S. tariff policies implemented by President Donald Trump will reduce its 2025 earnings by roughly €120 million. The company cited a 5 % decline in North American sales during the third quarter as a key contributor to the projected hit.
Key Facts
| Item | Detail |
|---|---|
| Tariff‑related loss | €120 million for 2025 |
| North America sales trend | 5 % drop in Q3 2025 |
| Production footprint | >90 % of output sourced from Asia, exposing products to U.S. import levies |
| Currency impact | Weak U.S. dollar contributed to revenue erosion |
| Strategic response | CEO Bjørn Gulden indicated efforts to mitigate tariff effects through supply‑chain adjustments and market‑price realignments |
Financial Context
The company’s share price closed at €184.4 on 27 October 2025, with a 52‑week high of €263.8 and a low of €160.75. Its price‑earnings ratio stands at 28.12. The anticipated €120 million cost represents a modest but material impact on the group’s profitability for the year.
Market Reaction
Shares of Adidas experienced a decline earlier in the trading week, reaching a low of more than 5 % from mid‑September levels. The market has responded to the tariff announcement with increased volatility, reflecting investor concerns over sustained revenue pressure in the U.S. market.
Outlook
While the tariff impact is expected to be smaller than initial projections, Adidas remains cautious. The company plans to continue monitoring U.S. trade policy developments and adjust its global sourcing strategy accordingly. Analysts have maintained a “Buy” recommendation with a target price of €274, citing stronger European and Latin American performance to offset U.S. headwinds.
This article summarizes publicly available information regarding Adidas AG’s response to U.S. tariffs and the resulting financial implications for the 2025 fiscal year.
