July 30(Reuters) -

Adidas on Wednesday said higher U.S. tariffs

would add around 200 million euros ($231 million) to its costs

in the second half, having impacted its second quarter results

by "double-digit" millions of euros.

The U.S. said earlier this month it would impose a 20%

levy on many Vietnamese exports and a 19% tariff on goods from

Indonesia, as it struck trade deals with the countries.

Vietnam and Indonesia, Adidas' two biggest sourcing

countries, made up for 27% and 19% of the company's products

respectively as of 2024.

"We do also not know what the indirect impact on consumer

demand will be should all these tariffs cause major inflation,"

CEO Bjorn Gulden said in a statement, as the sportswear maker

confirmed its guidance for the year.

The German sportswear brand said its inventories were up 16%

to 5.26 billion euros at the end of June, as it frontloaded

product purchases into the U.S. ahead of tariffs.

Net sales, adjusted for currency swings, rose 2.2% to 5.95

billion euros ($6.88 billion) in the quarter, roughly in line

with analysts' average estimate of 6.2 billion euros, according

to data compiled by LSEG.

The figure includes a hit from the strengthening of the euro

against several currencies of around 300 million euros, the

company said.

The company's gross margin increased by 0.9 percentage

points to 51.7% in the quarter, as reduced discounting as well

as lower product and freight costs mitigated the impacts from

currencies and tariffs.

Quarterly operating profit was 546 million euros, ahead of

analysts' expectations for 520 million euros per LSEG data.

($1 = 0.8651 euros)