Adidas Shares Take a Hit Due to Tariff Increases

Adidas AG experienced a significant 10% drop in its shares during Wednesday's trading session, following the release of its second-quarter earnings report. Despite reporting an increase in net income and earnings per share, the company highlighted a looming challenge.

The Cost of Tariffs on Adidas

The sportswear giant warned of an anticipated rise in product costs for the U.S. market, potentially up to €200 million, attributed to new tariffs. This announcement has stirred concerns among investors and market analysts alike.

Market Reaction and Future Outlook

By 4:06 pm CET, Adidas' stock had fallen by 9.84%, trading at €178.40. This downturn marks a 24.6% decrease over the past year, signaling a tough period ahead for the company.