German fashion house Hugo Boss reported a weaker second quarter performance in its Asia business, with just four per cent sales growth.

That is less than half the growth rate of nine per cent achieved in the preceding quarter.

The weaker sales were mainly attributed to the decline in spending on high-end products on the back of slowdown particularly in China.

“We are still growing in Asia. But at the moment we too are feeling the slowing in consumer demand that can be seen across the sector,” said CEO Claus-Dietrich Lahrs.

In China, its sales growth slowed by one per cent due to the loss of consumer traffic.

However, the weaker Asia sales have not changed Hugo Boss’ forward view for the Chinese market. It said it will continue to invest in new stores and refurbish some existing ones.

“While we are disappointed, we have by no means changed our view on the region’s mid-term growth potential,” said CFO Mark Langer.

Hugo Boss, known for its suits and fashion apparel, posted consolidated sales growth of 14 per cent to 485 million euros (US$594 million) in the second quarter. Sales in Europe grew 17 per cent, boosted by tourists shoppers while in the US, which is predicted to overtake Asia as the company’s biggest growth driver, sales rose 11 per cent.

Hugo Boss plans around 70 new store openings in the course of the year.

GB