Adidas North America Sales Decline 5% Amid Yeezy End and Tariffs

North America Sales Performance

• 📉 Adidas reported a 5% decline in North America sales for the third quarter.
• ⚠️ This downturn is attributed to the end of the Yeezy sneaker line and challenges from US tariffs.
• 📊 Sales growth in North America lagged behind Europe and Asia, suggesting a weaker US consumer.

Impact of Yeezy Partnership

• 👟 The company ended its profitable partnership with Yeezy brand designer due to his anti-Semitic remarks.
• 💸 The loss of the Yeezy line significantly impacted revenues and contributed to an annual loss two years prior.
• 🗓️ Adidas sold its last pair of Yeezy shoes at the end of 2024.

Global Financials and Outlook

• 📈 Despite regional challenges, global revenues grew 3% to a record 7.73 billion.
• 💲 A stronger euro negatively impacted Adidas sales by approximately $350 million.
• 🚀 Adidas has hiked its annual profit outlook and successfully offset some extra costs from US tariffs.

Industry Challenges and Strategies

• 🏭 Sportswear brands, sourcing from Asia, are shifting supply chains and raising prices.
• 💡 CEO Bjorn Golden described the environment as volatile, with US tariff hikes creating uncertainty.
• 📉 Stock performance reflects industry pressures, with Adidas shares down 22% and Nike down 11%.