(FRANKFURT) - First quarter profit at German fashion retailer Hugo Boss fell seven percent, the group said Wednesday, citing higher spending on new stores, the impact of a strong euro on exports and personnel costs stemming from the departure of key executives.

Net profit came to 65.2 million euros (102 million dollars), while operating profit slipped five percent to 93.6 million euros, a company statement said.

Sales gained two percent to 509.5 million euros.

Hugo Boss said the euro's rise against other major currencies had hurt its sales figures.

"Without taking account of fluctuations in forex rates, turnover increased by five percent," it said.

The German fashion company opened 11 new stores in the first quarter, raising its total number of outlets to 298.

In addition, one-time charges related to management board changes cost the firm about 12 million euros.

A conflict between Hugo Boss and its owner, British investment fund Permira, led to the resignation of former chief executive Bruno Saelzer, another director and the head of the supervisory board, Giuseppe Vita.

In early March, Permira, which owns 88 percent of the firm, obtained a sharp increase in the share dividend, leading some directors and unions to charge that Permira was pillaging the company.

But chief financial officer Joachim Reinhardt told a press conference on Wednesday that Hugo Boss was "working on" finding opportunities for acquisitions.

Reinhardt said the company was under no time pressure to make a move, however.

He also confirmed that the fashion retailer was still searching for a new chief executive to replace Saelzer.

"The search is ongoing, and we are in talks," the Hugo Boss executive said.

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