Adidas Group has reported a 97% drop in profits. For the first quarter, net profits fell to $6.5 million.
"We"ve faced a number of economic and market challenges in the first quarter of 2009," stated Adidas Group chairman and chief executive officer Herbert Hainer. "Our results have been materially affected by higher input prices, currency devaluation effects and restructuring costs."
The group also announced further restructuring this year designed to save 100 million euros, or $133.1 million annually. The measures include removing one level of management, the regional office, thus closing its regional headquarters in Europe and Asia, in a bid to increase speed-to-market.
Adidas also said it would establish a global retail organization under a chief retail officer to review underperforming stores in the coming months. The wholesale business will similarly be placed under the management of a chief sales officer.
Sales in North America are down 17% for the company, although business was up 31% in Latin America because of Reebok sales (Reebok is owned by Adidas).
Executives are worried about the rest of 2009 and refused to give a forecast for sales for the rest of the year.
Adidas Group has 
