Hugo Boss AG raised its sales and profit outlook for the year after a strategy shift kindled demand, but analysts called the upgrade disappointing after a bumper quarter.

The stock fell as much as 2.3 percent in Frankfurt trading as the new forecast matched what many were already estimating.

Chief executive officer Daniel Grieder is leading efforts to target younger shoppers. New collections presented at the Milan Fashion Week propelled the brand on social media and generated strong demand, buoying third-quarter results.

That prompted the German luxury fashion chain to say revenue could grow as much as 30 percent to a record this year, and earnings before interest and taxes may rise as much as 45 percent. The previous estimates were as high as 25 percent and 35 percent, respectively.

The upgrade “to catch up with year-end expectations is dissatisfying, given that the third quarter was ahead of consensus,” Charles Allen, an analyst at Bloomberg Intelligence, wrote in a note.

Sales growth in the third quarter was 18 percent, the highest ever for the German company and well above pre-pandemic levels. Both revenue and profit beat analysts’ estimates.

Boss is traditionally known for its men’s suits but sales of womenswear began to accelerate as well.

Grieder, a former Tommy Hilfiger executive, is focused on refreshing the retailer’s two main Hugo and Boss brands.

Revenue growth was strongest in Southeast Asia and the Pacific, with a 33 percent gain when adjusted for currency swings.

By Marthe Fourcade

Learn more:

The Strategy Behind The Hugo Boss Rebrand

CEO Daniel Grieder breaks down the strategy behind the German menswear giant’s new brand campaign, and why he’s splitting up “Hugo” and “Boss.”