Adidas warned that U.S. tariffs could cost the company up to 200 million euros in the second half of the year.
The sportswear maker said it has not raised prices yet but may increase them on new products once final tariff rates are confirmed around August 1.
CEO Bjørn Gulden said any price hikes would be limited to the U.S. market. Adidas has adjusted its sourcing strategy in response to the tariffs and will continue to review pricing based on market conditions.
Shares of Adidas fell as much as 9% in early trading on Wednesday before recovering slightly. By mid-morning in London, shares were down 6%.
Gulden said the company is trying to manage the impact of the tariffs without causing long-term damage. He also noted that higher tariffs could hurt consumer demand if they lead to broader inflation.
Despite these challenges, Adidas maintained its full-year forecast. The company expects currency-neutral sales to grow at a high-single-digit rate and operating profit to reach between 1.7 billion and 1.8 billion euros.
However, it warned that the guidance could change due to ongoing tariff and economic uncertainties.
Adidas reported weaker-than-expected second-quarter sales, especially in the U.S., which had the slowest growth. Revenue rose 2% year-on-year to 5.95 billion euros, with a negative currency impact of 300 million euros.
Operating profit increased 58% to 546 million euros for the quarter ending June 30.
