Frankfurt: German sportswear maker Adidas AG said on Tuesday its first quarter net profit fell 97% as the economic crisis crimped the company’s sales.
The Herzogenaurach-based company said net profit for the January-March period fell to just €5 million ($6.61 million) from €169 million in the first quarter of 2008.
Sales for the period fell 2% to €2.58 billion from €2.62 billion in the first quarter of 2008.
The company, whose brands include Reebok and TaylorMade Adidas Golf products, said it expects sales to decrease at a low to mid-single digit rate in 2009.
“We’ve faced a number of economic and market challenges in the first quarter of 2009,” said Herbert Hainer, Adidas’ chief executive.
“Our results have been materially affected by higher input prices, currency devaluation effects and restructuring costs. Although some of these items will recur again as we go through the balance of the year, I am convinced we will put most of these effects behind us in the current year,” Hainer said.