Revenues at fashion house Jil Sander AG have been hit by declining demand for luxury goods coupled with higher marketing costs.

The company said its pre-tax profit for the six months ending June 30 fell sharply to DEM150,000 from DEM9.93 million a year ago. First-half sales rose 6.6 per cent to DEM130.76 million from the DEM122.67 million posted in the year-ago period.