Customs uncertainty and unstable end markets are affecting Adidas’ growth and putting pressure on the German sportswear manufacturer’s shares.

The company’s shares fell by more than 7% on the DAX stock market index following the release of quarterly figures on Wednesday.

The reason for the decline is that the company has not raised its forecast for earnings before interest and taxes (EBIT) this year, the analysis firm Jefferies said.

Experts are now questioning whether the uncertain situation will also lead to more turbulence for wholesale order books.

The strong euro weighed on revenue development, as the Herzogenaurach-based company reported. Revenues increased by around 2% to €5.95 billion ($6.87 billion) in the second quarter. Currency-adjusted, Adidas achieved an increase of 8%.

According to the information provided, operating profit improved by 57.7% to €546 million, exceeding analysts’ expectations. Adidas benefited from fewer discounts as well as lower product and freight costs, it said.

For the rest of the year, the company still sees “upside potential” due to “strong results” in the first half of 2025. However, the US customs policy poses significant risks, it added.

Source: dpa.com