Sportswear colossus Adidas has felt the full brunt of the global downturn after posting a near-complete reversal of fortunes in the first quarter.
The German group said net income in the first three months was down 97 per cent to 5 million (£4.43 million) from 169 million (£150 million) a year earlier.
As a result Adidas chief executive Herbert Hainer revealed that regional headquarters in Asia and Europe would be shut, while a string of major stores also face closure.
He blamed higher raw materials prices, faltering sales on both sides of the Atlantic and the strength of the euro against the dollar for the first quarter collapse.
"We've faced a number of economic and market challenges in the first quarter of 2009," Mr Hainer said.
"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."