Authorities conducted a raid at Adidas AG’s headquarters in Herzogenaurach, Germany, on Tuesday as part of an ongoing investigation into potential breaches of tax and customs regulations.
The probe spans a five-year period starting in October 2019 and focuses on the importation of products into Germany.
Searches at multiple Adidas offices
The raid, carried out by customs authorities, targeted Adidas’s main headquarters as well as other company offices.
According to a statement from Adidas, the company has been cooperating with authorities for several years, providing documents and information related to the matter.
In its official response, Adidas stated,
The company does not expect any significant financial impact in connection with the investigation.
Focus of the investigation
The probe centers on customs and tax compliance for products imported into Germany.
While details remain sparse, the investigation raises questions about how imported goods were declared and whether any discrepancies may have occurred during the five-year review period.
Adidas emphasized that it has been in dialogue with customs officials throughout the investigation, underscoring its commitment to resolving the matter transparently.
A bright year under CEO Bjorn Gulden
Despite the legal challenges, Adidas has been performing strongly under CEO Bjorn Gulden, who took over the leadership role in late 2022 after leaving rival Puma SE.
The company raised its annual profit targets in October, driven by a resurgence in the popularity of retro sneakers, including the iconic Samba model.
Gulden’s tenure has been marked by strategic pivots and a renewed focus on product innovation, which have boosted consumer interest and sales.
Adidas’s improved outlook demonstrates resilience, even as the company navigates regulatory scrutiny.
Tax probes highlight broader corporate risks
Adidas is not the first major corporation to face scrutiny over customs and tax practices.
In recent years, European regulators have increasingly targeted multinational firms over compliance issues, reflecting broader efforts to ensure transparency and adherence to tax laws.
While Adidas has downplayed the financial impact of the investigation, the probe serves as a reminder of the reputational and operational risks associated with regulatory oversight.
Looking ahead
As the investigation continues, Adidas’s cooperation with authorities will be closely monitored.
With no significant financial fallout expected, the focus will likely remain on compliance improvements and maintaining the company’s strong performance trajectory under Gulden’s leadership.
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