German fashion firm Hugo Boss posted a 19% slump in first-half net income, due to higher impairment losses on receivables and higher write-downs on inventories.

The company generated sales of EUR788m during the period, a decline of 5%, leading to consolidated net income of EUR48m (US$67.5m).

However, Hugo Boss said initiatives taken at the end of last year helped protect it from the "emerging effects of the global economic crisis".

These included the optimising cost structures and work processes, reducing the complexity of collections in the past six months, and cutting production and logistics costs.

On the European market, Hugo Boss recorded a drop in sales of 8% to EUR540m, with sales in the US up 4% to EUR148m, but flat at EUR79m in the Asia/Pacific region.

License sales of EUR21m remained steady against the previous year period.

"The results for this first half of the year show that Hugo Boss can react quickly and flexibly to changes in the market and efficiently implement the right measures," said Claus-Dietrich Lahrs, chairman and CEO of the managing board of Hugo Boss.

"Thus, the group can and will hold its ground internationally in the current turbulent environment."