German designer fashion house Hugo Boss, the country's largest clothing maker, expects to increase domestic sales by as much as 4 percent this year, despite the fact that Germany's fashion market is shrinking, according to Chief Executive Officer Bruno Sälzer. "Our sales are growing in Germany, despite the underlying negative trend,'' Sälzer said in an interview with Bloomberg at a presentation of the Boss Orange collection of leisure wear in Berlin on Friday. Germany's fashion market shrank by about 2 percent in the first six months of 2005, he said. Consumption in Germany, which accounted for a quarter of Boss's revenue last year, will probably recover only slowly in coming years, Sälzer added. German retail sales could post the fourth straight annual decline in 2005, the HDE group of 100,000 retailers said on July 7.