The renowned Metzingen Germany-based fashion clothier Hugo Boss AG has reported a 27 percent drop in its last year profit related to one-time costs that included payments to the managers who had quitted the company.

In a statement, Hugo Boss said that its net income had plunged to 112 million euros, compared to the year-before figures of 154 million euros. The average net income estimate by Bloomberg-surveyed analysts was 126 million euros.

However, due to a 12 percent growth at the retailer's own shops, the sales figures showed a 3 percent improvement to 1.69 billion euros.

For the full year 2008, the Hugo Boss earnings figures, excluding special items, depicted an increase to 226.5 million euros from the year-earlier 207.9 million - not just beating its own target, but also the 215 million euros average estimate in a Reuters' poll.

Even as Hugo Boss expects declining revenue for the ongoing year, it still forecasts a profitability gain in spite of weakening sales. Commenting on the sales scenario, Hugo Boss Chief Executive Officer Claus-Dietrich Lahrs noted that the future orders for the autumn season are below last year's level.

Lahrs said that Hugo Boss expects "to be confronted with a challenging market environment and the danger of increasing consumer restraint in the coming fiscal year 2009."