German sportswear giant Puma said Thursday that its second-quarter profits had dropped sharply, a blow to the firm on the eve of the opening ceremony of the Olympic Games.
Net profits declined by 29 percent in the second three months of the year, compared to the same period in 2011, the firm said in a statement.
As a result, the company said it was speeding up what it called a "transformation programme" to "reduce complexity and establish a more efficient business model, operating on a leaner cost base."
In Europe, the firm plans to restructure its existing operations in 23 countries to seven areas.
The firm downgraded its forecast for net sales growth for the full year from "a high single-digit" rate to a "mid single-digit" rate, adding that profits would decrease "significantly" compared to last year.
It said this year's profits would be hit by one-off costs of some 100 million euros ($121 million) related to its restructuring programmes.
Puma is pinning its hopes on its sponsorship of the world's fastest man, Usain Bolt, to boost its profile at the London Olympics in the face of fierce competition from rivals Adidas and Nike.