Hugo Boss’ Asian sales have rebounded in the fourth quarter, prompting the German fashion retailer to revise its profit outlook.

The company’s stock price soared as much as 10 per cent after management said improved sales in Asia and Britain mean its profit decline will be less than previously predicted in the current financial year.

Hugo Boss Asia’ like-for-like sales soared 20 per cent in the latest quarter, after currency adjustments.

Asia accounts for about 20 per cent of Hugo Boss’ global sales and after currency adjustment, regional revenues rose five per cent in the fourth quarter – a significant turnaround from the three per cent decline of the previous quarter. The increase was aided by adjusting pricing more into line with those of the US and Europe.

It is now forecasting an operating profit for 2016 which is better than the previously predicted  decline of between 17 and 23 per cent. Final results will be revealed on 9 March.

“Fourth quarter results underline that we are on the right way,” said Mark Langer, Hugo Boss CEO. “’In China, we completed the turnaround in the second half of the year. In Europe, we held up well in a difficult market environment. We will continue to work intensively on implementing our strategic plans presented in November. We are confident that this will enable us to return to sustainable profitable growth.”

Group sales declined by one per cent for the quarter, with revenue reaching $1.04 billion. However, sales in the retail business improved by four per cent.

The company advised that it will publish its full year results for FY16 on 16 March.