German fashion house Hugo Boss on Thursday said it expected 2023 sales to grow at a mid-single-digit percentage rate, slower than last year even as it sees sales improving in the Asia and Pacific region.

The luxury group faces tougher comparisons figures in 2023 after it rode the wave of its recent brand revamp last year, with sales rising 27 percent to €3.65 billion ($3.85 billion), as pre-announced in January.

In the Asia and Pacific region, Hugo Boss expects its 2023 sales to rise “in the teens” percentage range, against a 10 percent increase last year.

The company also sees its operating profit increasing in a range of 5 percent to 12 percent to between €350 million and €375 million, compared with €335 million in 2022. Analysts had expected an operating profit of €360 million for 2023.

“Company investments to further strengthen products, brands, and digital expertise are expected to be more than offset by further efficiency gains,” Hugo Boss said in a statement.

It expects 2023 capital expenditures to come between €200 million and €250 million, against €191 million a year earlier.

The company’s shares were down 2.6 percent in early Frankfurt trade.

By Linda Pasquini and Anastasiia Kozlova; Editor: Milla Nissi

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