Hugo Boss raises 2023 profit and sales outlook
Inventories jump 53 in first half
Shares down 1 as higher working capital weighs

Aug 2 Reuters Hugo Boss has raised its sales and profit outlook after reporting a 20 jump in secondquarter revenues, as a brand revamp and marketing push helped the German fashion house overcome sluggish industrywide demand in China and the U.S.

The premium fashion group has stayed resilient in the slowing U.S. and European markets while boosting sales in Asia despite China having a slower recovery than expected.

China still offers strategic potential for Hugo Boss, Grieder told reporters on a call.

Hugo Boss shares, which have gained 32 this year, fell slightly, down 1 by 0740 GMT on Wednesday.

Deutsche Bank analysts said the market was already expecting a guidance increase, and said higher working capital will be seen skeptically given the retailer is battling high inventories.

Trade net working capital is expected to increase to between 18 and 19, Hugo Boss said, up from prior guidance of 17, due to inventories which jumped 53 in currencyadjusted terms over the first half.

Retailers around the world have been struggling with surplus stocks of clothing and footwear after last year39;s supply chain disruptions.

Hugo Boss said it expects a gradual normalisation of inventories to begin in the second half and is confident of bringing stocks down to less than 20 of group sales by 2025, from 56.6 at endJune.

Group quarterly sales grew to…