Adidas CEO fears US-China trade row will impact consumer spending in US
ADIDAS CEO Kasper Rorsted has raised concerns about how the US-China trade dispute will affect consumer spending in the US
ADIDAS CEO Kasper Rorsted has raised concerns about how the US-China trade dispute will affect consumer spending in the US.
'The much more serious (concern) is if the American consumer has less money to spend,' he told CNBC.
If the average American customer has less money to spend, 'he or she will spend less money on all products, including ours,' Mr Rorsted said.
His comments come in the wake of a report that showed that US consumer confidence in September declined more than expected, as the US-China trade war weighs on sentiment.
Mr Rorsted also revealed concerns about the devaluation of the Chinese currency given that one-quarter of Adidas' business is based in China.
Beijing in August set its official reference rate for the yuan at its weakest rate since April 2008, prompting the US Treasury to accuse China of being a currency manipulator.
'That's what we're seeing,' Mr Rorsted said with regards to potential impact. 'We're not seeing a slowdown in the manufacturing of our products.'
Despite the slowdown in global economic expansion, Mr Rorsted noted that the company 'saw very strong second-quarter growth in China'.
The German sportswear company posted disappointing results in August, however, it does anticipate a recovery. Back in August, Mr Rorsted said he saw 'very little impact for the consumer' from the trade dispute and was not especially concerned about how the additional tariffs will impact the company.