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Criminal prosecutors and customs investigators raided Adidas’ headquarters in Germany for the second day in a row on Wednesday, kicking into high gear a multi-year investigation into alleged tax evasion by the sports brand worth more than 1.1 billion euros.
The Luxembourg-based European Public Prosecutor’s Office announced on Wednesday that it is carrying out a “criminal investigation” against a German “group of sportswear companies” over “alleged tax evasion related to customs duties and import sales tax.”
It added that the potential crimes occurred in Germany and Austria and had “damaged the EU budget”.
EPPO did not name Adidas.
Adidas confirmed the raid and said it was “cooperating with authorities and providing the necessary documents and information.”
Adidas headquarters in Herzogenaurach, as well as several business offices and the private residences of employees, were also searched, according to people familiar with the matter.
One of the sources told the Financial Times that the search warrants put the total alleged tax damage at more than 1.1 billion euros, a figure first reported by Handelsblatt newspaper.
EPPO, German customs authorities and Adidas declined to comment on the amount or number of people involved.
Adidas said it did not expect any “significant financial impact” from the investigation, adding that it had been aware of the investigation “for several years.” The company said the issue was caused by “differences in the interpretation of German and European laws” and stressed that it “continues to work closely with customs authorities.”
The company said the conduct in question took place between October 2019 and August 2024. Adidas disclosed “higher provisions” for “customs-related risks” in 2022, but did not quantify them.
At the time, the company said this provision was included within the one-time impact on operating profit of 350 million euros. The total also includes winding down its Russian operations, resolving legal disputes and restructuring costs.
In addition to this provision, Adidas already covers some of its tax and customs charges, according to people familiar with the matter.
Stakeholders said that most of the tax claims at issue relate to import value-added tax that Adidas did not declare or pay, and that the company would receive a tax refund of the same amount, which would hurt Adidas’ profits. added that it has no effect.
