Hugo Boss has announced it expects to see more stable trading this year, following a tumultuous 2016.
The German luxury fashion retailer managed to save £87 million over the last year thanks to strict control on its expenses, a process which it intends to continue throughout this year.
Following a four per cent drop in group sales last year, it has taken measures to reduce rents and close loss-making stores.
It expects to see EBITDA between minus and plus three per cent over the next year compared to 2016, as well as sales to remain stable on a currency adjusted basis.
Despite UK sales growing by nearly 10 per cent, figures were offset by poorer performances in Germany and France last year.
Similarly, its overall retail sales increased by two per cent, but growth was held back by a nine per cent drop in wholesale sales.
“We are adjusting our business model to changes in customer behavior,” chief executive Mark Langer said.
“With the clear alignment of our brand portfolio into Boss and Hugo we will be able to make better use of our strengths in the upper premium segment.
“I am very confident that Hugo Boss will return to sustainable and profitable growth after this phase of stabilisation.”