Hugo Boss expects fifty new stores to drive an increase in sales and profit across the rest of the year, despite posting a 7% drop in net profit to €75.6m (£56m) for the first quarter of 2015.
Total sales at the German fashion house climbed 9% to €668m (£498m) during the 12 week period, with sales in Europe up 3% to €409 (£305m).
Online sales grew 14% on a currency-adjusted basis, boosted by the relaunch of hugoboss.com.
Currency-adjusted wholesale performance dropped 2% year on year, affected by the takeover of stores in Asia and the Middle East, which were previously managed by wholesale partners. Boss said it expects the decline to continue “slightly” for the remainder of the year.
Hugo Boss closed the quarter with 1,060 own stores, an increase of 19 on December 31. It plans to open 50 new own stores worldwide by 2016.
Hugo Boss chief executive Claus-Dietrich Lahrs spoke of “strong consumer restraint” across the clothing industry. “We are convinced that we will return to stronger growth in the next few quarters,” he added.
In February, private equity firm Permira, once Hugo Boss’s largest stakeholder, cut its share by almost half, from 32% to 14%.