Hugo Boss shares jumped 9% after the fashion label, in which Sports Direct owner Frasers Group PLC (LSE:FRAS) has a 19% stake, reported results ahead of expectations and backed its outlook for the year.
The German clothing company said increased global economic uncertainty is weighing on the consumer mood around the world, with sales down 2% in the first quarter.
It said this would have been worse but for its strategic initiatives and "brand momentum".
Revenues were down 8% in the Asia-Pacific region due to "subdued consumer demand in China", with 1% declines in in the Americas and the Europe, Middle East and Africa (EMEA) regions.
For the full year it expects sales to be in a range between a decline of 2% and growth of 2%, with underling earnings (EBIT) up between 5% and 22%.
The macroeconomic background is expected to remain volatile, "intensified by ongoing tariff uncertainty".
Last month, Frasers Group expanded its strategic investment in Hugo Boss through the sale of further put options to take its ownership to 13.5 million shares, representing a 19.2% direct stake.
Frasers also holds additional put options which could take its stake to 30.2 million shares, or a 43% stake.