Adidas shares face a decline due to lingering concerns over customs regulations - Uncertainty in customs regulations is causing a drop in Adidas' stock prices
Adidas Avoids Wholesale Order Disruptions Amidst Uncertainty
Adidas, the global sportswear giant, has reported a significant improvement in its operating result (EBIT), growing by 57.7 percent to 546 million euros, according to the latest quarterly figures. However, the company's stock has fallen more than 7 percent in the Dax following the release of these figures, due to pressure from Zoll-Unsicherheit (tariff uncertainty) and uncertain markets.
Despite the uncertainty, Adidas' wholesale order books remain full for Q3 and Q4 2025, and are building for Q1 2026, with no indications of cancellations or weakening orders so far. CEO Bjørn Gulden has stated that the order book is "as solid as it's been all the time," and they have not seen cancellations with factories nor changed planning based on tariff uncertainties or current consumer demand trends.
The company's strong performance is evident in its revenue, which increased by around 2 percent to 5.95 billion euros, and by 8 percent on a currency-neutral basis. Adidas' enhanced product portfolio, improved retailer relationships, and robust brand momentum are outweighing tariff and macroeconomic uncertainties, as suggested by the double-digit growth across markets and channels in Q2 and H1 2025.
However, the US trade policy poses high risks for Adidas, and if inflation in the U.S. worsens significantly, order volumes could be affected. Experts are questioning the potential impact of this uncertainty on Adidas' wholesale orders, and whether it will lead to more turbulence in the company's order books.
Despite the current stability, Adidas has not provided an updated guidance for its EBIT this year, and analysts at Jefferies have noted the lack of raised guidance. For the rest of the year, Adidas still sees "improvement potential," but the experts are questioning if the uncertain situation will continue to put pressure on Adidas' development.
| Factor | Impact on Adidas Wholesale Orders | Source | |---------------------------------|--------------------------------------------------------------|----------------------------| | Zoll (tariff) uncertainty | No current negative impact or cancellations observed | [1], [4] | | Inflation and macroeconomic risks| May affect demand if worsens, but no current order adjustments | [4] | | Current wholesale order book | Full for Q3 and Q4 2025; building for Q1 2026; solid | [4] | | Wholesale revenue performance | Grew 14% in H1 2025, strong across markets | [2], [3] | | US trade policy | High risks for Adidas | [5] | | Currency-neutral revenue growth | 8 percent increase | [6] | | EBIT guidance | Not raised this year | [7] |
While the environment remains uncertain, Adidas has so far avoided wholesale order disruptions due to tariffs or related uncertainties. The company’s forecast and solid order books indicate no immediate turbulence in wholesale order books is expected, but risks remain if inflation or market conditions deteriorate significantly.
Community aid initiatives could potentially provide vocational training to employees affected by financial fluctuations in Adidas' business, facilitating their transition to other careers within the company or the local community. Such training programs may help mitigate the effects of market uncertainties on the workforce.
In the long run, vocational training and business development resources could help Adidas' athletes and employees build their own enterprises, diversifying revenue streams and reducing dependency on the sports industry for income, thereby lessening the impact of sports-related uncertainties on the company.
