Adidas potential dividend run

What happened: Adidas (ADDYY) reported first-quarter operating profit of €705 million, a 16% increase from the previous year, surpassing analysts' expectations of €647 million. The company's net sales also rose, with fiscal year 2026 operating profit projected to reach around €2.3 billion, indicating strong demand for its products.

Market impact: This earnings beat and positive outlook could drive investor confidence in the sportswear sector, potentially leading to increased demand for Adidas' stock and other players like Nike (NKE) and Lululemon (LULU). It may also influence dividend expectations, with Adidas potentially increasing its payouts.

What to watch next: Adidas' next earnings release, scheduled for August 3, 2023, will provide further insight into its financial performance. Additionally, any updates on its FY2026 outlook and dividend policy during this release or at the upcoming Capital Market Day on November 15, 2023, will be crucial for investors.