BERLIN: German fashion house Hugo Boss Thursday said it was sticking to its positive forecast for 2013 despite a decline in the first three months of the year largely due to wholesale sales.
The group said "the persistently challenging economic environment and a different timing of product deliveries to wholesale partners" had impacted its first-quarter sales and earnings.
Sales for the period dropped two percent to 593 million euros ($781 million) compared with the same period a year earlier, while net profit fell 14 percent to 82 million euros.
Underlying profit, as measured by earnings before interest, depreciation and amortisation (EBITDA), decreased by 11 percent to 133 million euros, before special items, the group said.
Nevertheless Hugo Boss announced that it still expected "high single-digit currency-adjusted sales growth in 2013" with all regions tipped to contribute.
"With a better performance of the wholesale business in the further course of this year, we shall return to renewed growth in the second quarter already," chief executive Claus-Dietrich Lahrs said in a statement.
"We therefore reconfirm our sales and profit targets for 2013."
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