Adidas Flags €400M Tariff Hit as Nike Faces 300bp YoY Margin Drop
Adidas forecasts 2026 operating profit of €2.3 billion but warns of a €400 million hit from US tariffs and currency headwinds, sending its shares down 8%. Meanwhile, Nike’s gross margin contracted 300 basis points year-over-year as it rebuilds retailer relationships ahead of its March 31 quarterly report.
1. Adidas Warns of €400 Million Tariff and FX Headwinds
Adidas projected 2026 operating profit of €2.3 billion but flagged a combined €400 million drag from US duties and unfavorable currency movements. The German group’s shares slid about 8% to €137 on Frankfurt trading, reflecting growing margin pressures in its supply chain.
2. Nike Rebuilds Retail Strategy Amid Margin Pressure
Nike reported a 300-basis-point year-over-year gross margin decline, linked to its shift away from traditional retailers and direct-to-consumer push. The company is strengthening ties with third-party sellers and refocusing on key footwear lines as it prepares to report first-quarter results on March 31, with EPS and sales estimates trimmed since December but recent February stability noted.