Adidas North America sales hit by weak dollar, CEO says tariff impact still unclear

Core Insights - Adidas' third-quarter sales in North America decreased by 5% due to a weak dollar and cautious U.S. retailers amid uncertainty regarding the impact of tariffs [1][2] - Despite the decline in North America, global revenues increased by 3% to a record 6.63 billion euros ($7.73 billion) [1] - The strong euro negatively impacted sales by 300 million euros, but when adjusted for currency, North American sales rose by 1%, slower than the overall currency-adjusted growth of 8% [2] Tariff Impact - Adidas anticipates that Trump's tariffs will reduce its operating profit by 120 million euros this year, with the most significant impact expected in the fourth quarter [3] - This estimate was revised down from an initial projection of 200 million euros due to price hikes and supply chain adjustments that mitigated some of the tariff effects [3] Pricing Strategy - The company has avoided raising prices on lower-cost items to cater to price-sensitive customers, instead increasing prices on higher-end products, such as the Samba sneaker, which rose from $90 to $100 [4] - CEO Bjorn Gulden noted that consumer reactions to the new price points have been acceptable, but it is still early to draw definitive conclusions [4] Supply Chain Adjustments - To manage the impact of higher U.S. tariffs, Adidas has reduced its sourcing from China to the U.S. [5] Market Position and Recovery - Despite a challenging consumer environment and excess inventory, Adidas continues to show growth [6] - The company is in the process of recovering from the fallout of ending its partnership with the Yeezy brand, which was previously a significant revenue source [6]