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Investing.com -- Adidas (ETR:ADSGN) (OTC:ADDYY) reaffirmed its full-year (FY) guidance on Wednesday, citing persistent uncertainty over the impact of potential U.S. tariffs.
The company continues to forecast 2025 operating profit between €1.7 billion and €1.8 billion, falling short of the €2.09 billion consensus estimate cited by Jefferies. Currency-neutral sales are expected to grow at a high-single-digit rate.
“The year has started great for us and normally we would now be very bullish in our outlook for the full year,” said CEO Bjorn Gulden. “We feel the volatility and uncertainty in the world does not make this prudent.”
Adidas warned that new tariffs under President Trump could add up to €200 million in costs on its U.S. business over the remainder of the year.
"The lack of upgrade to FY 2025 EBIT guidance looks to be driven by increased tariff uncertainty and volatility in end markets," Jefferies analysts led by James Grzinic said in a note. "Whether this reflects increased turbulence in the wholesale orderbook will be a key focus."
Second-quarter sales rose 2.2% to €5.95 billion, missing analysts’ expectations of €6.15 billion. Operating profit climbed nearly 58% to €546 million, beating the €523 million estimate.
Net income rose to €369 million from €190 million a year earlier.
Gross margin improved by 90 basis points year-on-year to 51.7%, in line with consensus.
Sales growth moderated across major regions compared to the first quarter. Europe rose 4.1%, down from 14% in Q1. North America increased 8.1% versus 13%, and Greater China slowed to 2.1% from 13%.