{"id":40078,"title":"Adidas lowers profit forecast for 2025 as growth slows","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2025-03-06T05:25:47+00:00","modified":"2025-03-06T05:25:47+00:00","canonical_url":"https://stockmark.it/adidas-lowers-profit-forecast-for-2025-as-growth-slows/","markdown_url":"https://stockmark.it/adidas-lowers-profit-forecast-for-2025-as-growth-slows.md","json_url":"https://stockmark.it/adidas-lowers-profit-forecast-for-2025-as-growth-slows.json","category":"Financial","categories":["Financial","Retail"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2025-03-06T052524.106.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"Adidas has reduced its profit forecast for 2025 amidst signs of slowing growth, as the German sportswear giant navigates a challenging economic landscape. The company now expects operating profits to range between €1.7 billion and €1.8 billion, falling below analysts’ estimates of €2.1 billion. This follows a period of strong growth driven by its retro trainers, including the Samba and Gazelle ranges, which reignited consumer demand.\n\nThe company’s chief executive, Bjorn Gulden, who took over leadership in 2023, remains optimistic about Adidas’s trajectory. Gulden reassured stakeholders, citing confidence in the firm’s product pipeline and marketing strategies to maintain global brand momentum. However, with macroeconomic uncertainties persisting, including the impact of tariffs imposed by the United States and inflationary pressures, he acknowledged the need to remain cautious in the months ahead.\n\nThe brand has set a sales growth target of 10 per cent for 2025, which marks a slight deceleration from the 12 per cent growth it recorded the previous year. Adidas continues to aim for leadership in its global markets, except in the United States, where Nike’s dominant position remains a key challenge for the brand.\n\nTariffs imposed by President Trump on goods from China, Mexico, and Canada, as well as the potential for penalties on imports from Vietnam, a critical hub for Adidas’s manufacturing, could further impact consumer spending and supply chain costs. Gulden indicated that while Adidas has built solid foundations, external pressures may limit growth potential in the near term.\n\nDespite these challenges, the company posted double-digit revenue increases in both Europe and Greater China during 2024. The North American market also showed strong year-end growth, with sales rising by 15 per cent in the fourth quarter compared to the same period in 2023. Adidas has benefited from a slowdown at rival Nike, which has faced declining revenues and weak outlooks, positioning the German group well in a competitive market.\n\nAdidas, however, is not without difficulties. The termination of its collaboration with Kanye West in 2022 over the controversial Yeezy line inflicted significant losses, leading to a financial setback in 2023. By the end of 2024, the last of Adidas’s Yeezy stock had been sold, concluding the brand’s effort to liquidate unsold inventory. Analysts at Deutsche Bank have noted strengths in Adidas’s branding and market performance, while cautioning that current guidance could weigh on share performance in the short term.\n\nAdidas shares fell by 1.6 per cent to €237.80 by Wednesday night in Frankfurt trading. While analysts remain positive about the company’s long-term investment case, immediate challenges reflect the uncertain path ahead for the once high-flying sportswear leader."}