adidas May Hike Prices as US Tariff Costs Increase by $230 Million USD
CEO Bjørn Gulden stated that the company plans to review its product slate to determine which SKUs could be affected.
Summary
- adidas may have to raise its prices in the US, as tariffs will increase the company’s costs by 200 million EUR ($230 million USD).
- CEO Bjørn Gulden stated that the company will review its current product lineup to decide with SKUs could be priced higher.
adidas on Wednesday stated that it may have to raise its prices in the United States, as a result of US tariffs increasing costs by 200 million EUR ($230 million USD).
In a call with analysts, the German sportswear brand’s CEO, Bjørn Gulden, stated that the tariffs “will directly increase the cost of our products for the US,” per Reuters. He added that adidas is still not aware of the final tariff levels, though he is concerned about how the new prices will affect consumer demand “should all these tariffs cause major inflation.”
“What I’m mostly worried about, to be honest, is not only the cost but it’s what is going to be the consumer reaction in the market with all these price increases that I think will come not only in our sector, but in general in the U.S.,” he said. “Should we get mega inflation in the U.S., things will happen on the demand side, then of course volumes will go down.”
Gulden added that the company plans to review its product slate to determine which SKUs would be priced higher, though he declined to state by how much. “We will try to keep the prices on known models [stable] as long as we can, and then do new pricing on product that hasn’t existed before,” he said.
