Adidas warns of potential price hikes in the U.S. due to tariffs adding 200 million euros in costs. Shares drop 11%, CEO concerned about consumer reaction. Company reviewing pricing strategy. Sales increased 2.2% in second quarter, below analysts’ estimates. Concerns arise about sales growth momentum.

Footwear tariffs impact Adidas, with 20% levy on Vietnamese exports and 19% on Indonesian goods. Tariffs on Vietnamese and Indonesian footwear now at 46% and 43% respectively. Company frontloading shipments ahead of tariffs, driving up inventories by 16%. U.S. remains key market despite challenges.

Higher tariffs and currency fluctuations impact Adidas’ second quarter. Operating profit surpasses analysts’ expectations. “Lifestyle” revenues grow 13%, boosted by new sneaker styles and merchandise collaborations. CEO aims to double business in the U.S. despite challenges. Collaboration with rock group Oasis drives sales.

Read more at Yahoo Finance: Adidas may hike prices, warns of US consumer hit from tariffs