Fashion giant Hugo Boss AG on Tuesday dismissed reports that the former head of its US unit, Marty Staff, had inflated sales figures in order to receive a huge bonus.

The firm was responding to claims made in a German newspaper last week by a former employee. Boss was recently forced to slash its 2002 profit forecast by 11 per cent to 95 million euros but said that move was because of inventory discrepancies at its US unit.

Staff left the company last month and has been replaced by Tony Lucia.