German sportswear manufacturer Puma kicked off the start of a World Cup year with lower sales but higher profit in the first quarter, the company reported on Thursday.

"Operationally, we were off to a solid start to our transition year in 2026," chief executive Arthur Hoeld said in a statement. "We have managed to reduce our inventory levels faster than planned, streamlined our product portfolio and addressed operational inefficiencies."

Hoeld highlighted the success of the athletes sponsored by Puma in the first quarter, who won 21 medals at the World Athletics Indoor Championships and set national records at the Berlin Half Marathon.

The company is banking on major sporting events - particularly the upcoming World Cup in North America - to boost revenue, with stronger jersey sales expected during the tournament.

Puma is currently undergoing restructuring, and external factors have weighed on performance. A strong euro and weaker demand in the Europe, Middle East and Africa (EMEA) region impacted results.

Quarterly sales fell 6.3% to just under €1.87 billion ($2.2 billion). Adjusted for currency effects, the decline was 1%. Lower sales in the Middle East, partly due to the conflict involving Iran, also contributed to the drop, the company said.

Despite the revenue decline, Puma reported an increase in profitability driven by the reversal of inventory write-downs, lower freight costs and a higher share of direct-to-consumer sales.

Adjusted earnings before interest and taxes (EBIT) rose 5% to €64.4 million, excluding restructuring-related costs. Net profit increased significantly, from €0.5 million to €26.5 million.