Adidas Navigates Tariff Turbulence with Strategic Moves

Adidas faced a 5% sales dip in North America due to a weak dollar and cautious retailers amid President Trump's tariffs. Despite a record 6.63 billion euros global revenue, Adidas took a hit from a strong euro. It mitigated tariff effects through price hikes and supply chain adjustments.

Adidas experienced a 5% decline in North American sales in the third quarter, largely influenced by a weak dollar and hesitance from U.S. retailers regarding the impact of President Donald Trump's tariffs on consumers.

The brand's global revenue still hit a record 6.63 billion euros, due in part to a strong euro. Adjusting for currency fluctuations, North American sales rose 1%, which is below the 8% currency-adjusted growth seen globally.

To cushion the tariff's blow, anticipated to trim 120 million euros from its operating profit this year, Adidas implemented price hikes and altered its supply chain. The company continues to seek growth avenues post-Yeezy partnership, leveraging the popularity of models like Samba sneakers.

(With inputs from agencies.)