Hugo Boss reported better- than-expected profits as it battles a takeover attempt by retail tycoon Mike Ashley.

The German clothing brand said it had made ‘tangible progress’ over the three months to the end of June.

Profits fell 28 per cent to £51million, compared to £69.4million in the same period last year, but this beat profit expectations of £44.5million.

Frasers, owned by billionaire Ashley, has made a £1.7billion offer for the 74 per cent of Hugo Boss that it does not already own, valuing the company at £2.3billion. 

But the firm has urged shareholders not to accept, saying the offer was ‘inadequate’.

A Hugo Boss spokesman yesterday reiterated that the price ‘does not adequately reflect the company’s standalone prospects and future value creation potential’.

Bosses believe its strategy –which includes improving the appeal of its clothes – will pay off. 

But sales fell 9 per cent to £775million after shop footfall was hit by the war in the Middle East.