Adidas shares fell sharply on Wednesday after the German sportswear company issued a cautious profit forecast for 2026 and warned of a €400 million ($465 million) hit from US tariffs and currency effects. The company expects operating profit to rise to €2.3 billion, but investors reacted negatively, sending shares down about 8% to roughly €137 on the Frankfurt Stock Exchange.
The stock decline reflects broader concerns over Adidas’s exposure to US tariffs on products manufactured in Asia and the impact of a strengthening euro, which reduces the value of overseas profits. Deutsche Bank noted that the guidance for operating income and margins was “slightly weaker-than-expected.”
Despite the weak outlook for 2026, Adidas reported strong results for 2025, with net income rising 75% to €1.34 billion and sales increasing around 5% to €24.8 billion, supported by double-digit growth in both footwear and apparel. CEO Bjorn Gulden, who took over in 2023 following the company’s split from Ye, said 2025 “turned out much better than we had planned.” Adidas also extended Gulden’s contract through 2030, signaling confidence in his leadership amid competitive and geopolitical pressures.
