adidas May Have to Raise Prices in US Due to Tariffs
In a recent announcement, adidas revealed that it may have to increase prices in the United States due to the impact of tariffs. The company estimates that these tariffs will result in an additional cost of 200 million EUR ($230 million USD).
CEO Bjørn Gulden stated that the company will be reviewing its current product lineup to determine which SKUs will be affected by the price increase. This news comes after adidas reported a strong second quarter, with a 4% increase in sales.
During a call with analysts, Gulden expressed concern about the potential impact of these price increases on consumer demand. He stated, “What I’m mostly worried about, to be honest, is not only the cost but it’s what is going to be the consumer reaction in the market with all these price increases that I think will come not only in our sector, but in general in the U.S.”
Gulden also mentioned that the company plans to keep prices stable for their popular models, but will adjust pricing for new products. He did not specify the exact amount of the price increase, but assured that they will try to minimize the impact on consumers.
This news comes as a blow to adidas, as they have been experiencing strong growth in the US market. However, with the uncertainty surrounding tariffs, the company is taking proactive measures to mitigate the potential impact on their business.
