Herzogenaurach, Germany - Sporting goods manufacturer Puma reported a first-quarter drop in profits on Wednesday amid slumping sales in the key US market.

Earnings before tax and interest dropped to 125.8 million euros (193 million dollars) from 134.8 million euros in the first three months of 2007, the company said in a statement.

Net earnings declined from 96.6 million euros to 90.1 million euros despite a 2.7-per-cent increase in turnover to 673.3 million euros, the company with the leaping cat logo said.

Sales in the United States were down 14.2 per cent to 134.1 million dollars, largely as a result of what Puma called "the continued moderate environment" in the mall-based business. US end- of-quarter orders declined 20.8 per cent.

The company, which is controlled by French luxury goods manufacturer PPR, declined to make any profit predictions for the full year.

"In a challenging market, management confirms a single-digit sales increase" for 2008, Puma said. (dpa)