Tariffs Shake Up Nike and Adidas—Adidas Set to Pull Ahead

509

Both Nike and Adidas are facing rising U.S. import tariffs in 2025, forcing major shifts in sourcing and pricing strategy. Nike is raising prices and relocating production, while Adidas’s more diversified supply chain and pricing discipline position it to steal share.

Nike anticipates a $1 billion tariff hit this year and plans U.S. retail hikes—$5‑10 per pair on mid-to-high‑end shoes—starting in June. It’s also shrinking China’s share of U.S. imports from 16% to single digits by mid‑2026 and shifting production to lower‑tariff countries like Indonesia, Mexico, and the Philippines.

Meanwhile, Adidas expects up to €200 million in added costs due to tariffs on Vietnamese and Indonesian imports. Yet its share of responsible sourcing—30% from Vietnam and 23% from Indonesia—and local-for-local production strategy help mitigate risk. So far, Adidas has delayed price increases but plans some adjustments ahead.

Despite these headwinds, Adidas Q2 revenues rose 2.2% to €5.95 billion and operating profit jumped 57.7% to €546 million. It reaffirmed its full-year operating profit forecast of €1.7–1.8 billion. Nike, by contrast, saw a 12% revenue decline in Q4 to $11.1 billion and an 86% year-over-year drop in profit—though analysts view its recent performance as a possible inflection point.

Data firm GlobalData now predicts Adidas’s global apparel market share will rise by 0.1 percentage points to 1.9% in 2025, while Nike’s share could shrink 0.3 points to 2.6%. Growth in Adidas’s Originals line and performance shoes contrasts with Nike’s innovation delays and weaker fashion appeal.

Nike is reacting to economic pressure with price hikes and supply-chain shifts—but Adidas’s agile sourcing, stronger margins, and branding momentum may give it the upper hand in capturing consumer spend this year.