German sportswear makers fall after US tariffs

Shares in Adidas ADSGn.DE and Puma PUMG.DE fall 9-10% after U.S. tariff announcement

"Very bad news for the US fashion and sportswear industries, which import 98% and 99% of their products sold in the US, respectively, especially from China and Vietnam," Cedric Rossi at Bryan Garnier says

Sportswear brands will be disproportionately hit by higher tariffs on Vietnam, Rossi says, given that the country represents about 50% of Nike's NKE.N footwear production, 40% of Adidas' footwear production, and 90% for On Holding ONON.K

"We would caution that the reciprocal tariffs may not only negatively impact margins by, on average, double digit % across the sector, but also top-line amid rising concerns over inflation, uncertainty, and stock market volatility," Metzler analyst Felix Jonathan Dennl says

Dennl adds companies in the sector are likely to respond with price hikes in the U.S.

Adidas and Puma stocks are at the bottom of German blue-chip index .GDAXI and mid-cap index .MDAXI, respectively