A whopping 200 million euros worth of previously collected tariffs, paid back to Adidas by the US government, pushed the German sportswear giant’s profits to a new peak in the previous quarter.
Adidas achieved record core profit in the third quarter, the German sportswear firm said Tuesday, boosted by healthy sales and 200 million euros of refunded tariffs from the US government.
Core profit in the three months to the end of September was 1.01 billion euros, Adidas said, up 37 percent on the same time last year.
“During the quarter, Adidas received the majority of its US tariff claims,” it said in a statement, adding that profit margins were also boosted “by healthy full-price sales”.
The US Supreme Court in February struck down many of the tariffs from US President Donald Trump’s trade blitz from last year, finding the duties exceeded his powers to regulate commerce.
An August court filing said that the US government had accepted almost $130 billion worth of refunds up to the end of July.
Adidas further raised its outlook for the year, expecting core profit of 2.5 billion euros, up from 2.3 billion.
The company’s better-than-expected performance meant it would invest 100 million euros more than planned, it said.
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