Hugo Boss predicts growth with sales rising again

The luxury goods industry was hit hard by the global recession, but sales are back on the up.

Hugo Boss, the German premium fashion house, expects to join the trend itself, saying today it is looking for a strong second half to the year.

Chief executive Claus-Dietrich Lahrs: "On the basis of the development in pre-orders for fall/winter, we are confident 2010 will be a year of growth for Hugo Boss."

First-quarter earnings fell 12% to £80 million on sales of £386 million, down 8%.

Analysts say sweeping management changes since the 2007 takeover by private equity company Permira have yet to feed through into an improved financial performance.

This week the company reversed a decision to close a suit factory in Cleveland, Ohio, after a union-led protest campaign.