The Adidas sporting goods giant announced on Tuesday that the tariffs imposed by US President Donald Trump will lead to prices of all their products in the US market.
The German company said it cannot yet determine the exact percentage of increase due to uncertainty about the rates, especially with suppliers located in China, Vietnam and Cambodia.
Despite the impact of tariffs, Adidas registered a 155% leap in the net income of continuous operations in the first quarter, reaching 436 million euros (US $ 496.5 million), exceeding market expectations.
In a statement, Adidas stressed that the highest rates will inevitably increase the costs of their products in the US.
Although the company has reduced product exports to China to the US market to the US market, it faces significant challenges with up to 40% tariffs on products from countries such as Vietnam and Cambodia.
Adidas also pointed out that uncertainty in commercial negotiations between the US and exporting countries prevent definitive prices decisions and makes it difficult to predict the impact on consumer demand.
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The company said that without the impact of tariffs, it would have revised its annual perspective of revenue and operational profits, driven by a strong volume of orders and a positive perception of the brand. However, he chose to maintain his current forecast, citing the increase in uncertainty.
Net Adidas sales grew 12.7% in the first quarter, reaching 6.15 billion euros, while its operational margin rose 3.8 percentage points to 9.9%.
The company also recently ended its collaboration with musician Kanye West, after controversy involving anti -Semitic comments, and announced the sale of the Yeezy line remaining stock.
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Adidas faces a dilemma shared by many companies in the retailer who operate in the US, from low -cost brands to luxury brands.
The company said it currently cannot produce almost any of its products in the US, depending on factories in Asian countries that are subject to high tariffs.
