US tariff refund helps Adidas to record quarterly profit
Core profit for the three months ending in September was €1.01 billion, up 37% at the same time last year.
Frankfurt-based sportswear giant Adidas reported a record core profit in the third quarter, the company disclosed on Tuesday. This surge in earnings was driven by robust sales and a substantial €200 million refund from the US government on tariffs. The Adidas statement revealed that the firm's core profit for the three months ending September 30 was €1.01 billion, marking a 37% increase compared to the same period a year ago.
A significant portion of Adidas' US tariff claims were successfully claimed, contributing to the improved profit margins. The company also attributed the boost to strong full-price sales. In February, the US Supreme Court overturned numerous tariffs imposed by former President Donald Trump, ruling that they exceeded the president's regulatory authority.
An August court filing indicated that the US government had granted nearly US$130 billion in refunds as of July. Adidas has raised its projected annual core profit to €2.5 billion, up from €2.3 billion earlier. The company's better-than-expected performance will see an additional €100 million in investments beyond their initial plans.
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