Hugo Boss said the renovation of several major stores should revive sales growth after the German fashion house reported a drop in first-quarter earnings due to reorganisation costs, higher marketing spending and a strong dollar.

German fashion house Hugo Boss has beaten second-quarter expectations helped by restructuring and its first rise in US sales in two years, boosting its shares.

Hugo Boss shares fell the most in five months as weakness in the US kept the German clothier’s sales revival in check.

Hugo Boss, the ailing German clothier, said earnings may rise in 2017 as its turnaround takes shape after profit plummeted on weak sales in China and the US last year.