Adidas has reported double-digit growth across all markets and channels for the first quarter of 2025.

The company achieved an operating profit of €610 million (US$651.7 million), reflecting a 9.9% operating margin.

Despite this growth, Adidas will not revise its full-year outlook due to uncertainties related to US tariffs.

The company expects increased tariffs on imports to the US, including those from countries outside of China, to raise production costs and potentially affect product pricing.

Adidas said it cannot quantify the potential impact on consumer demand at this time and is monitoring the situation closely.

To address challenges in the US market, the company plans to focus on improving results in other regions.

🔗 Source: Adidas

🧠 Food for thought

1️⃣ Apparel and footwear face disproportionate tariff burden despite strong performance

The footwear and apparel industry bears a significant tariff burden compared to other sectors, explaining why adidas remains cautious despite strong results.

While apparel and footwear account for only 6% of U.S. imports, they pay 51% of total tariff receipts, making them particularly vulnerable to trade policy shifts 1.

With 97% of clothing sold in the U.S. being imported, companies like adidas have limited options to avoid tariff impacts, regardless of their financial strength 2.

Current tariffs represent the highest effective rate since 1903, creating a substantial challenge for the industry with average effective tariff rates reaching 27% 3.

The economic pressure is considerable, with analysts predicting U.S. consumers could face apparel price increases of 64% in the short term and 27% in the long term due to these tariffs 4.

2️⃣ Global footwear brands face complex supply chain adjustments

Adidas’s comments about being unable to produce in the U.S. reflect a broader industry reality where rapid supply chain shifts are nearly impossible.

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