Adidas Stock: Q4 Surge Drives Share Price Above €260

Adidas demonstrated remarkable financial performance in the fourth quarter of 2023, propelling its stock price up by more than 6.5% to approximately €260 - a level not seen since early 2022. The sportswear giant significantly exceeded market expectations with a 24% revenue increase to €5.965 billion compared to the previous year. In a dramatic turnaround, the company transformed an operating loss of €377 million into a profit of €57 million. The quarter's success was further highlighted by an impressive gross margin improvement of 5.2 percentage points, reaching 49.8%. Earnings per share showed substantial growth, climbing to €2.48 from €1.45 in the previous year.

Forward-Looking Prospects

The company's positive momentum has generated optimistic projections for shareholder returns, with expectations of more than doubling the dividend to €1.45 per share, up from the previous €0.70. Looking ahead to the current fiscal year, analysts anticipate earnings per share to reach approximately €4.00, supported by strong performance across both lifestyle and performance segments. The company's overall 2023 performance, marked by an 11% revenue increase to €23.7 billion and a significant improvement in operating profit to €1.3 billion, underscores its robust growth trajectory.