Adidas AG $ADS.DE, the German athletic wear giant, reported solid earnings for the first quarter of 2025 but opted not to revise its full-year outlook. The company cited ongoing uncertainty surrounding potential U.S. import tariffs as the main factor for its cautious stance, despite a performance that under normal conditions would have warranted an upgrade to its revenue and profit guidance.

In 2024, the luxury goods market faces intensified headwinds, with iconic Italian fashion house Valentino reporting a notable 22% drop in operating profit. This contraction reflects a wider, global trend: declining demand for luxury items, a reality especially apparent in key Asian markets.