Adidas maintains full year guidance despite strong first quarter
Adidas has maintained its full year guidance following a strong performance in its first quarter.
However, the sportswear giant has warned that the prices of its popular trainers are likely to increase as a result of new US tariffs.
During the period, currency-neutral revenues climbed by 13% year-on-year to €6.15 billion led by the footwear division where revenue increased by 17%. The performance was driven by double-digit growth in the brand’s Originals, sportswear, running, training, specialist sports, and performance basketball categories.
Meanwhile, apparel and accessories revenues grew by 8% and 10% respectively.
Adidas chief executive Bjørn Gulden said: “I am very proud of what our team achieved in Q1. Double-digit growth across all markets and channels in today’s volatile environment shows the strength of our brand and underlines the great job our people are doing.
“The operating profit of € 610 million and the 9.9% operating margin prove the great potential of our company.”
Adidas said the uncertainty regarding the US tariffs meant that it was unable to raise its outlook for full year sales and profit, despite the strong first quarter performance.
Gulden added: “Since we currently cannot produce almost any of our products in the US, these higher tariffs will eventually cause higher costs for all our products for the US market.
“Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be.”
