Troubled German fashion giant Hugo Boss AG on Monday issued another profit warning and slashed its full-year profit forecast to 70 million euros from its earlier outlook of 95 million euros.

Citing tough market conditions, the company said in a statement that first half net profit would come in below expectations at 30 million euros, down almost 50 per cent from 58.9 million in the year-ago period.

"Following the difficult first six months of 2002, no new positive impulses are being anticipated for the fashion segment during the year's second half," said the statement. The news sent its share price tumbling to a two-year low.

In May, Boss trimmed its net profit forecast by 11 per cent after the head of its US unit, Marty Staff, quit along with finance chief Vincent Ottomanelli following accounting discrepancies that left a six million euro gap in inventories.

Last week, CEO Bruno Salzer, was quoted in a German newspaper as saying he does not expect its Boss Woman line to turn in a profit before 2004.