UPDATE 2-Hugo Boss sees silver lining after weak Q2

* Hugo Boss confirms 2009 outlook, sees improvement in 2010

* CEO says company will hold its ground internationally

* Q2 net loss widened to 15.9 mln eur from 6.1 mln eur

* Q2 sales fall 5.4 pct to 303.9 mln eur

* Shares rise as much as 6 pct

(Recasts lead, adds analyst comment, detail, background)

FRANKFURT, July 30 (Reuters) - German fashion house Hugo Boss (BOSG_p.DE) expects cost-cutting measures to boost underlying profit this year and next, even though weak wholesale demand meant it posted a wider second-quarter loss on Thursday.

The fashion company said even though 2009 would be "an extremely difficult year with regard to the overall economic situation", it expected positive business developments for 2010.

It still expects this year's sales to fall while underlying profitability will increase thanks to restructuring measures already implemented, and Hugo Boss said it expects such "profitable growth to continue next year".

"The group can and will hold its ground internationally in the current turbulent environment," Chief Executive Claus-Dietrich Lahrs said, adding that Hugo Boss expects to gain market share as a result of the crisis.

The company currently has no plans for takeovers, it said.

Lahrs told Reuters earlier this month that business had been improving since mid-May. [ID:nL2610381]

Hugo Boss shares rose as much as 6 percent and were up 5.8 percent at 19.72 euros by 1210 GMT, easily outperforming a 0.6 percent gain in Germany's mid-cap index .MDAXI.

"Revenue was slightly better than expected, in our view, and the decline in sales growth has not worsened compared to the first quarter which is a clear positive," said UniCredit analyst Volker Bosse.

"Also, an improved cash-flow situation gives reason for optimism, as does the confirmed outlook for 2009," he added.

During times of economic uncertainty, results show consumers prefer strong well-established brands such as Louis Vuitton (LVMH.PA), Hermes (HRMS.PA) and Gucci (PRTP.PA), which they see offering more value for money than younger, more fickle fashion and leather brands -- a trend Hugo Boss hopes to benefit from.

LVMH, the world's biggest luxury goods group, posted stronger-than-expected earnings from its leather goods and fashion division earlier this week. [ID:nLR482652]

Hugo Boss, majority owned by private equity group Permira [PERM.UL], posted a second-quarter net loss that widened to 15.9 million euros ($22.4 million) from 6.1 million last year on sales of 303.9 million euros, down 5.4 percent.

But it reduced its net debt by 15 percent to 528.6 million euros. Its high debt load is one of the reasons why Hugo Boss trades at a discount to Italian shoemaker Geox (GEO.MI) and U.S. fashion company Polo Ralph Lauren Corp (RL.N), analysts said. ($1=.7095 Euro) (Reporting by Eva Kuehnen; editing by Simon Jessop)