The adidas Group has announced a drop in Q1 profits.

Adidas AG first quarter profits of 2009 have plunged 97%, with its net income dropping to €5 million (£4.4m) from €169m.

The decrease – of 6% – in adidas sales was attributed to its football category results compared with the category’s strong sales the previous year for the UEFA EURO 2008. The overall economic downturn was also identified as contributing to the Group’s weak financial results.

In response to the figures, adidas has announced an organisational restructure and a target annual saving of €100 million. This would include jobs cuts at its Reebok, Rockport and TaylorMade-adidas golf divisions. Finances are also hoped to benefit from the upcoming FIFA World Cup in 2010.

Herbert Hainer, adidas Group CEO and Chairman, was optimistic about the company’s future: “We’ve faced a number of economic and market challenges in the first quarter of 2009. 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.”

The Germany-headquartered adidas Group owns sportswear brand Reebok and golf brand TaylorMade, and employs approximately 39,000 people worldwide. Its shares stand at €26.86, down almost 9% on the Frankfurt stock exchange.