German fashion house Hugo Boss has posted better-than-expected sales growth helped by a pick up in sales in China and North and Latin America.

The business posted a five per cent increase in sales for the first quarter to €650 million (AUD$1.03bn), in currency adjusted terms, boosted by strong growth in China and the Americas. Operating profit has increased slightly at €99 million (AUD$158m) compared to the previous corresponding period, confirming its 2018 outlook.

Investments in product quality, the digital transformation of the business model and the strong euro have curbed the profit increase.

Mark Langer, Hugo Boss CEO, said that thanks to the its performance in the first quarter of 2018, they are feeling more confident that the business will achieve its sales and earnings targets for the full year.

“The strong increase in the group’s own retail business shows that our new collections are being well received by customers,” Langer said. “Our investments in the quality of our products and the desirability of our brands are therefore paying off.”

Langer said the substantial progress achieved in their online business is also encouraging.

“This positive performance strengthens our confidence that we will achieve our sales and earnings targets for the full year.”

Hugo Boss has been making efforts to take the brand more upmarket and expand in womenswear and refocused on premium men’s clothing.

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