German fashion group Hugo Boss recorded sales in 2005 up 12 percent, but cautioned that sales and profit growth would slow somewhat this year.

The company said it had achieved record sales of €1.309 million (£904 million), up from €1.168 million in 2004. Growth was driven by the “successful realignment of its business with the three growth segments Womenswear, Shoes and Leather Accessories, and Directly Operated Stores.�

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Womenswear sales soared 38 percent to €95.7 million. Meanwhile, sales from the group’s Directly Operated Stores business rose 41 percent to €137.5 million.

Net income climbed 23 percent to €108.2 million.

“We are well positioned for the future and are confident that we can continue to grow significantly stronger than the global fashion market,� chief executive Bruno Sälzer said in a statement.

He estimated that pre-tax and net profits and sales would increase between 7 percent and 9 percent this year.