200 million additional costs
Adidas has certainly treated its profitability. The German company improved its gross margin at 51.7 %, compared to 50.8 % before. But on the turnover, the soufflé fell a bit: 5.95 billion euros in sales in the quarter, an increase of 2.2 %, where the market was rather on 6.2 billion. In question in particular: one euro too strong compared to the dollar, which has sealed revenues in the United States. As a result, Adidas has lost around 300 million euros just due to the exchange rate. Concretely, a pair of basketball sold 100 dollars has “lost” the value due to the fall of the greenback.
The trade agreement between European Union and the United States leaves many open questions
But what is the main reason for concern on the markets? Again and again the trade war. The Trump government has struck strong: 20 % on textiles from Vietnam, 19 % on those of Indonesia. The problem ? The two countries represented almost half of the production of Adidas last year. The invoice therefore promises to be salty: up to 200 million euros in additional costs for the year, according to estimates of the CEO of the three -band brand. “”We still don’t know what final customs duties in the United States will be “recognized the Bjørn Gulden, which also fears a domino effect on consumption in the event of“inflation majeure” triggered by these surcharges.
On July 27, a last minute agreement between Ursula von der Leyen and Donald Trump certainly made it possible to avoid a frontal clash between Europe and the United States. But it still provides a 15 % tax on most European exports. Suffice to say that the risks remain present for the company.
Do not panic but prudence
To amortize the shock, Adidas accelerated its deliveries before the entry into force of the taxes, even if it means inflating its stocks. The group has not revised its annual objectives, but it does not raise them either. A signal that the markets obviously did not fail to sanction. “”The absence of raising of forecasts is explained by the growing uncertainty linked to customs duties and the volatility of the final markets “underlines the Jefferies bank at Zone Boursewho calls for caution for the future.
Bruno Colmant: “We were fooled in all directions. Trump was an excellent negotiator”
At UBS, an analyst warns that Adidas will quickly have to reassure his order books and his ambitions for 2026, if he wants to convince that this stop is only a passenger. In the meantime, Bjørn Gulden plays the card of cautious optimism. He says remainsr “confident to achieve the annual objectives” of the group, while recognizing that“Obviously, it could also change.”
