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Investing.com -- Adidas (ETR:ADSGN) (OTC:ADDYY) maintained its full-year guidance on Tuesday but warned that new U.S. tariffs could pose a risk to its results.
The German sportswear company said it still expects high-single-digit growth in currency-neutral sales this year and projects operating profit (EBIT) between 1.7 billion and 1.8 billion euros ($1.94 billion-$2.06 billion).
“While the company confirms its outlook, the range of possible outcomes has increased,” it said, citing uncertainty linked to higher U.S. tariffs.
The company also noted that "cost increases due to higher tariffs will eventually cause price increases."
U.S. President Donald Trump recently announced new tariffs on imports from key footwear and apparel sourcing countries, including China, Vietnam, and Cambodia. While the duties were later suspended for 90 days, tariffs on certain products remain in effect.
Since CEO Bjorn Gulden took the helm in 2023, Adidas has repeatedly raised its full-year guidance as part of its efforts to outperform expectations.
The company also confirmed previously released first-quarter results, posting sales of 6.15 billion euros, up 13% year-over-year in currency-neutral terms.
Operating profit rose to 610 million euros from 336 million euros a year earlier, with a margin of 9.9%.
"No real surprises in today’s 1Q25 results, with reconfirmation of FY25E revenue/EBIT guidance likely a temporary relief, until more clarity is available regarding U.S. tariff outcomes," RBC Capital Markets analyst Piral Dadhania said in a note.
"We believe Adidas is executing well in a tough consumer environment and delivering amongst the highest revenue and earnings growth across our coverage," he added.