An Adidas logo is seen at the new Futurecraft shoe unveiling event in New York City, New York, U.S. April 6, 2017. REUTERS/Joe Penney

By Linda Pasquini and Helen Reid

(Reuters) -Adidas' CEO said on Wednesday that nervous retailers in the United States were ordering less product upfront as they waited to see the full impact of U.S. President Donald Trump's tariffs on American shoppers.

Adidas' third-quarter sales, hit by a weak dollar, dipped 5% in North America, though even adjusting for the currency impact, the region - its second-biggest market after Europe - was the worst performing.

Its shares were down nearly 7% by 1427 GMT, despite global revenues growing 3% to a quarterly record of 6.63 billion euros ($7.73 billion).

"(U.S.) retailers are very careful, because of course they're also nervous. So you clearly see that they want to buy less upfront. And then they're also very flexible with the discount rates," Bjorn Gulden said on a call with journalists.

Widespread discounting in the sector is also linked to the uncertainty retailers and consumers feel, he added.

"We have planned our business based on continuing to grow in the U.S.," Gulden said.

"We have priced the product according to what we think the consumer is willing to pay ... The impact next year, of course, will be higher, because you will not be able to mitigate everything."

MITIGATING TARIFF HIT WITH PRICE HIKES, SUPPLY CHAIN CHANGES

Adidas expects U.S. tariffs to shave 120 million euros off its operating profit this year, with the biggest hit coming in the fourth quarter, Gulden said. That is less than an earlier estimate of 200 million euros, after it offset a portion of the tariff hit with price hikes and supply chain changes.

Gulden said Adidas has tried not to hike prices on its cheaper shoes and clothes as those customers are more sensitive to increases, opting to instead raise prices on more expensive items.

Adidas's popular Samba sneaker, for example, is now priced at $100, up from $90 previously.

Still, he said all retailers importing from countries hit hardest by Trump's import duties - like China and Vietnam - were nervous about how customers will react when those costs are passed on.

"I don't think the price increases are really visible for many consumers yet," he said.

Like other sportswear brands, which source everything from tracksuits to sneakers from factories in Asia, Adidas has cut its sourcing from China to the U.S. to manage the impact of higher U.S. tariffs.

A strong euro versus the dollar, meanwhile, dealt a 300 million euro hit to quarterly sales. Adjusting for the currency impact, sales in North America were up 1%, though still significantly slower than Adidas' overall currency-adjusted figure of 8%.

RECOVERING FROM YEEZY, SAMBA STILL GROWING

"Even though the general consumer is not strong and there was lots of inventory in the market, still Adidas manages to grow well," said Simon Jaeger, portfolio manager at Flossbach von Storch in Cologne.

Adidas is still recovering from the Yeezy affair after ending its highly profitable partnership with the brand's designer - the rapper Ye, formerly known as Kanye West - over his antisemitic rants.

The loss of the line - it sold its last Yeezy shoes last year - dented revenues, driving the company to an annual loss in 2023.

Under Gulden, Adidas' post-Yeezy growth has been fuelled by multicoloured retro "terrace" sneakers like the Samba and Gazelle, but it has been looking for new sources of growth as that trend turns.

"The Samba is still growing. I know people say it's over, but it isn't," Gulden said.

But he also pointed to Adidas' running segment - where it has invested in new high-tech shoes and marathon-winning athletes - which grew 30% in the quarter, improving on 25% second-quarter growth.

($1 = 0.8575 euros)

(Reporting by Linda Pasquini in Gdansk and by Helen Reid in London; Editing by Matt Scuffham and Joe Bavier)