A challenging macro environment is taking its toll on Puma, where sales were flat in the first quarter and profits tumbled in the double-digits.

Sales rose 0.1 percent to 2.07 billion euros in the period between January and March on an adjusted currency basis. In the same period last year, Puma sales equaled 2.1 billion euros.

“Despite a challenging environment, Puma achieved sales on last year’s level in constant currencies,” said Markus Neubrand, chief financial officer. “Despite the challenges we had to face in the first quarter, we remain committed to executing our ‘nextlevel’ cost efficiency program.”

Puma plans to slash 500 corporate positions globally by the end of the second quarter. Arne Freundt, former chief executive officer, was one of the first casualties, leaving last month over differences in strategy. Freundt had taken over the top role in 2023, replacing Bjorn Gulden who left for Adidas.

Freundt was replaced by Adidas alum, Arthur Hoeld, who had been with Adidas since 1998.

In the three months, Puma’s EBIT — earnings before interest and taxes, or operating profit — dropped 63.7 percent to 57.7 million euros from 159 million euros.

In Puma’s home market of Europe, the Middle East and Africa, sales rose 5.1 percent, in currency adjusted terms, to 891.7 million euros.

In the Americas, sales fell 2.7 percent to 753.7 million euros, due to a lackluster performance in North America. Puma said Latin America had actually seen double digit growth.

The biggest fall was in Asia Pacific, where sales slipped 4.7 percent to 430.5 million euros. Puma attributed the fall to “ongoing softness in greater China.”

Footwear sales rose 2.4 percent while apparel was down 1.5 percent. Sales of accessories fell 5.7 percent.

Despite the flat sales and double-digit EBIT decline, Puma said the results were “broadly in line with expectations,” and did not alter sales and profit guidance for fiscal 2025.

Puma said it expects currency-adjusted sales to grow in low- to mid-single digits over the course of this year and for EBIT to land somewhere between 520 million euros and 600 million euros.