Sales at premium brand Hugo Boss slipped 2% in the first quarter as the reshuffling of wholesale deliveries affected revenues.
In the three months to the end of March group sales dropped €593m (£500m) as the business rephased its timing of wholesale deliveries, because of an increased importance of the summer collection, which is mainly delivered in the second quarter.
Wholesale revenues dropped 14% compared to the previous year, however this was offset by soaring sales on Hugo Boss’ retail arm, including outlets and ecommerce, which rose 15%.
EBITDA dropped 11% to €133m (£112m) due to the high operating costs caused by the expansion of the group’s own retail business.
Despite the slip in overall sales the brand reaffirmed its growth forecast for the year and expects a high single digit growth for 2013.
Chief executive Claus-Dietrich Lahrs said: “The market environment proved to be very challenging in the early months of this year. 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. We therefore reconfirm our sales and profit targets for 2013.”