Adidas Headquarters Raided In German Customs and Tax Regulations Probe
Adidas said an official search was conducted on Tuesday in several locations in Germany, including its headquarters in Herzogenaurach, confirming media reports.
German authorities are investigating the sports company’s compliance with customs and tax regulations when importing products into Germany, over a period spanning from October 2019 to August 2024.
Adidas said that it was cooperating with authorities and was providing “the necessary documents and information.”
“The company has been in contact with the relevant customs authorities for several years regarding the matter of the investigation, which have been well known already,” it declared. “Adidas continues to work closely with the customs authorities to also clarify issues arising from different interpretations of German and European law.”
Adidas said it “does not expect any significant financial impact in connection with the investigation.”
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Stock markets did not show an adverse reaction after German media reported the raid on Tuesday. Its shares closed up 1 percent on Tuesday, and were up 0.3 percent in midday trading on Wednesday.
This comes as business prospects are looking up for the German sports giant. It reported an unexpectedly positive third quarter, growing 10 percent in sales and closing the turbulent chapter of the Yeezy line.
At the time, the company said it had reached a final settlement with Ye, formerly known as Kanye West, following the end of their collaboration in 2022 due to the American musician’s increasingly erratic behavior and offensive comments.
As a result, Adidas raised its guidance for the third time this year. It now expects growth of around 10 percent for the full year, versus a previous forecast of a midsingle-digit increase.
Adidas also remains embroiled in a long-running multinational trademark battle with Thom Browne regarding the use of stripes. The American fashion brand won the latest round of the battle in November after Adidas sought to remove Thom Browne’s range of products comprising its signature four-bar motif from the U.K. market, contending it would confuse consumers.
