Cartier jewellery-owner Richemont has today reported lower third-quarter sales in Europe, becoming the latest luxury company to post a slowdown in demand.
The world's second-largest luxury group said its overall sales growth decelerated to 8% in the three months to December 31, when currency effects were removed, down from the 12% increase in the previous six months.
Richemont reported growth in "almost all regions" but Europe was a blackspot for Richemont, whose brands also include Swiss watchmakers Jaeger-LeCoulture, IWC and Piaget.
Sales in Europe fell 3% in constant currencies, the company said, as the return of Chinese tourists and domestic customers failed to compensate for an overall decline in tourist spending, particularly among American customers.
Still, globally Richemont's sales rose 4% at actual currency rates to €5.59 billion during the third quarter, exceeding the €5.48 billion forecast by Barclays and €5.44 billion forecast by the RBC, but short of the €5.7 billion forecast by Zuercher Kantonalbank.
The luxury sector has been buffeted in recent months by persistent inflation, high interest rates and more expensive mortgages in the US sapping the appetite of customers to splash out.
A slower-than-expected recovery in China after the Covid-19 shutdowns and weak consumer sentiment have also weighed on the sector.
Richemont brushed off concerns about China, posting a 25% sales increase in the country, including Macau and Hong Kong, which helped compensate for weaker performances in other parts of Asia.
Despite what Richemont described as an uncertain economic and geopolitical environment, the company's jewellery business - which also includes Van Cleef & Arpels, continued to do well.
Sales were up 6%, better than the 1% decline seen at its watches division.
