Summary
- Adidas may have to raise prices in the United States, as tariffs will increase the company’s costs by 200 million euros ($230 million).
- CEO Bjørn Gulden said the company will review its current lineup to determine that SKUS is priced higher.
Adidas It may have to raise its prices as the cost of U.S. tariffs increased by 200 million euros ($230 million), it said on Wednesday.
In a call with analysts, Bjørn Gulden, CEO of German sportswear brand, said the tariffs “will directly increase the cost of our products.” Reuters. He added that Adidas still has no idea of the final tariff levels, although he is concerned about how the new prices will affect consumer demand “if all of these tariffs will lead to significant inflation.”
“Honestly, what I worry most is not only the cost, but the consumer reaction in the market, and with all these prices going up, I think that will be going to happen not only in our industry, but in the U.S. in general,” he said. “If we get big inflation in the U.S., things will happen on demand, then of course, the volume will go down.”
Gulden added that the company plans to review its product segments to determine which SKUs will be priced higher, although he refuses to state in a way that in how many ways. “We will try our best to keep the prices of known models (stable) and then make new prices for products that did not exist before,” he said.
