FRANKFURT- German fashion house Hugo Boss has reported lower-than-expected pretax earnings, citing a weaker consumer mood and taking one-off charges due in part to an overhaul of its Middle Eastern distribution network.

In an unscheduled release of preliminary full-year results, it said pretax earnings edged 1 percent higher to $501 million, missing the average analyst estimate of 470 million after 19 million in one-off charges, mainly due to severing ties with a Middle East sales agent and the planned consolidation of its production facilities.

Sales rose 6 percent to $3 billion, slightly missing an average estimate of 2.59 billion. The group also said its business environment had deteriorated significantly in the fourth quarter compared with the previous quarters.

Its shares dropped 4 percent at 0830 GMT, the biggest decliners in Germany's MDAX of mid-range stocks, which was nearly unchanged. Hugo Boss added it would take full control of its Chinese, Korean and Middle Eastern stores from its partners to strengthen its retail operations in key emerging markets.