German luxury fashion house Hugo Boss joins luxury retailers reporting weaker sales on China’s slowdown.

Hugo Boss says it will not achieve its targeted profit margin by 2015 as crackdown on gift giving dulls luxury goods demand.

The company, known for its men’s suits, is still keeping its target to hit sales of 3 billion euros ($4.1 billion) but said it would no longer be able to reach an Ebitda margin of 25 per cent in 2015.

“We are clearly committed to a 25 per cent Ebitda margin target but this will happen after 2015,” said Hugo Boss CEO Claus-Dietrich Lahrs.

French spirits group Remy Cointreau also said it has been hit by the luxury slowdown. It said it expects a significant drop in annual profit caused by weaker sales in Europe and Asia, as first-half operating profits decreased 7.3 per cent to €132.7 million ($180.4 million).