Can Adidas Stock Recover

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Can Adidas Stock Recover

Can Adidas Recover From The Slump?

US tariffs have affected everything, and this also includes the global brand Adidas (ADDYY). The shares of Adidas are down by more than 20% this year, and analysts are forecasting more downside ahead.

However, the German shoemaker is actively trying to work things around and make a solid comeback. Recently, the CEO of Adidas shared that they have suffered a multi-million dollar loss during Q2 due to US tariffs.

Us Tariffs Impact The Adidas Revenue

According to an estimate, Adidas will have to pay almost $232 million in tariffs during the rest of 2025. That's equal to almost 3.4% of the Q2 revenue and will seriously affect their bottom line.

Despite all of this, Adidas is still committed that it will become a leader in all the major markets except for the North American region.

The Adidas CEO commented on how the US tariffs will increase the prices of consumer goods. And it's just not with any specific country, as Trump has imposed tariffs on Indonesia, Vietnam, China, Europe, and pretty much the whole world.

Adidas was initially manufacturing its products in China, but eventually moved to Vietnam. However, the US government has now put a 46% tariff on all items coming from Vietnam into the USA.

For a company like Adidas, it would seriously impact the prices of their products and make it tough for them to compete with others. However, the tariffs will also impact other big names such as Wayfair and Nike.

Just like Adidas, another company that has suffered from tariffs is Pumpa. Available data shows that their sales are down by 2% and the company has also downgraded its outlook for the rest of this year.

Now, it remains to be seen if Adidas will increase the prices to counter the tariff costs or not. Once it is clear how Adidas will navigate this, only then will the investors be able to make an informed decision.

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