Adidas Sets Cautious Tone for 2025 Outlook, Flags Tariff Risk
Adidas has forecast a lower-than-expected operating profit for 2025, citing sales growth that will slow from a strong 2024, and warning of increased volatility due to U.S. tariffs. The company's CEO, Bjorn Gulden, called the guidance "conservative" but noted risks to consumer demand due to inflation and trade tensions. Adidas expects annual revenues to increase at a "high single-digit" rate in currency-neutral terms.
- This move highlights the growing vulnerability of global supply chains, particularly in the fashion industry, where fluctuations in tariffs can have a ripple effect on production and sales.
- As tariffs continue to be a wild card, how will Adidas's cautious approach impact its ability to invest in innovation and stay competitive with newer sportswear brands?