German fashion giant Hugo Boss AG revealed on Tuesday 2003 Spring/Summer were down four per cent due to lower demand in the US and Germany but reaffirmed its full-year net profit forecast.

The firm, which has downgraded its profit outlook twice this year and is owned by Marzotto, said German orders were down 10 per cent year-on-year and North American orders five per cent below last year's levels.

It added it still expects to post a fiscal 2003 net profit of 70 million euros. Since the start of 2002, Hugo Boss has seen the head and finance chief of its US operations quit amid accounting discrepancies that triggered a six million euro shortfall in inventories.