Headlines
Adidas shares slump as CEO flags heavy discounting in 'nervous' US market
Published by Global Banking & Finance Review®
Posted on October 29, 2025
4 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 29, 2025
4 min readLast updated: January 21, 2026
Adidas shares dropped over 10% as US retailers, nervous about tariffs, reduced orders and increased discounting, impacting sales.
By Linda Pasquini and Helen Reid
(Reuters) -Adidas' CEO said on Wednesday that "nervous" retailers in the United States were ordering less product upfront as they waited to see the full impact of President Donald Trump's tariffs on American shoppers.
He also flagged widespread discounting, a sign of uncertainty among retailers and consumers.
Adidas' third-quarter sales, hit by a weak dollar, dipped 5% in North America, though even adjusting for the currency impact, its second-biggest market after Europe was the worst performing.
Its shares closed more than 10% lower, the biggest daily fall since the end of July, despite global revenue growing 3% to a quarterly record of 6.63 billion euros ($7.73 billion).
"(U.S.) retailers are very careful...So you clearly see that they want to buy less upfront," Bjorn Gulden said on a call with journalists, adding they were also being "very flexible" with discounts as they need to clear built-up inventories from other big brands.
Gulden later told investors that the discounting trend was hurting Adidas' full-price sales.
"If you are at full price on a 100 euro shoe and the competitor is at 50% on a 200 euro shoe, then of course you will sell less."
Ahead of Black Friday, the biggest sales event of the year, Gulden said he did not think that discounts would be lower than last year.
MITIGATING TARIFF HIT WITH PRICE HIKES, SUPPLY CHAIN CHANGES
Adidas expects U.S. tariffs to shave 120 million euros off its operating profit this year, with the biggest hit coming in the fourth quarter, Gulden said. That is less than an earlier estimate of 200 million euros, after higher prices and supply-chain changes partially offset the new levies.
Gulden said Adidas has tried not to hike prices on its cheaper shoes and clothes as those customers are more sensitive to increases, opting to instead raise prices on more expensive items.
Adidas' popular Samba sneaker, for example, is now priced at $100, up from $90 previously.
Still, Gulden said he did not think the price increases were really visible for many consumers yet.
Like other sportswear brands, which source everything from tracksuits to sneakers from factories in Asia, Adidas has cut its sourcing from China to the U.S. to manage the impact of higher U.S. tariffs.
A strong euro versus the dollar, meanwhile, dealt a 300 million euro hit to quarterly sales. Adjusting for the currency impact, sales in North America were up 1%, though still significantly slower than Adidas' overall currency-adjusted figure of 8%.
RECOVERING FROM YEEZY, SAMBA STILL GROWING
"Even though the general consumer is not strong and there was lots of inventory in the market, still Adidas manages to grow well," said Simon Jaeger, portfolio manager at Flossbach von Storch in Cologne.
Adidas is still recovering from the Yeezy affair after ending its highly profitable partnership with the brand's designer - the rapper Ye, formerly known as Kanye West - over his antisemitic rants.
The loss of the line drove the company to an annual loss in 2023.
Under Gulden, Adidas' post-Yeezy growth has been fuelled by multicoloured retro "terrace" sneakers like the Samba and Gazelle.
"The Samba is still growing. I know people say it's over, but it isn't," Gulden said.
But Adidas has been looking for new sources of growth as that trend turns, such as the running segment, which grew 30% in the quarter, improving on 25% second-quarter growth.
($1 = 0.8575 euros)
(Reporting by Linda Pasquini in Gdansk and by Helen Reid in London; Editing by Matt Scuffham and Joe Bavier, Kirsten Donovan)
Discounting refers to the practice of reducing the price of goods or services to stimulate sales. Retailers often use discounts to attract customers, especially during competitive periods.
Inventory is the stock of goods and materials that a business holds for the purpose of resale. Effective inventory management is crucial for maintaining supply and meeting customer demand.
Operating profit is the profit a company makes from its normal business operations, excluding any income derived from non-operational activities. It reflects the efficiency of the company's core business.
Consumer perception refers to the way consumers view a brand or product based on their experiences, beliefs, and attitudes. It significantly influences purchasing decisions and brand loyalty.
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