Shares in Hugo Boss rise on sales update as H&M fall

German fashion house Hugo Boss’ 2016 operating profit will be bigger than feared following a fourth-quarter sales recovery in China and Britain which upped their value as much as 10%.

But shares in Sweden’s budget fashion retailer H&M — the world’s second-largest clothing retailer after Inditex — fell as its sales update lagged expectations.

Revenue in Asia, where Hugo Boss makes almost a fifth of sales, rose a currency-adjusted 5% in the fourth quarter, recovering from a 3% fall in the third after it cut prices in China closer to European and US levels.