BERLIN (Reuters) – Hugo Boss (BOSSn.DE) expects a recovery in its business in the third quarter at the earliest due to store closures and consumer caution during the coronavirus pandemic, the chief executive of German fashion house said on Wednesday.

“We must prepare for a very difficult second quarter,” Mark Langer told the company’s annual general meeting held online.

Langer said conditions were particularly tough in Europe and America which account for about 85% of sales and which are still hit by store closures and restrained consumption patterns.

“We only expect a noticeable but gradual improvement in the market environment from the third quarter at the earliest,” he said.

Hugo Boss warned earlier this month it expects second quarter sales to fall by at least 50% even though all its stores have reopened in China and are gradually reopening elsewhere.