Adidas AG reported second-quarter 2025 revenue of €5.95 billion, falling short of the €6.21 billion analysts expected. Operating profit rose to €546 million, beating estimates, while net profit from continuing operations increased to €375 million. The German sportswear maker’s gross margin improved to 51.7%, slightly ahead of forecasts. The company maintained its full-year operating profit forecast of €1.7 billion to €1.8 billion. Management cautioned, however, that recently introduced U.S. tariffs on Chinese-origin goods would raise costs by roughly €200 million in the second half of the year, adding that the burden could translate into higher retail prices. The tariff warning overshadowed the better-than-expected profit, sending Adidas shares down as much as 11% in Frankfurt trading before they trimmed losses. Investors remain concerned that higher prices could weigh on demand in the key North American market.