Cartier jewellery owner Richemont reported a 4 per cent increase in sales during its third quarter on Thursday (Jan 18), as the world’s second-largest luxury group became the latest company in the sector to post a slowdown in demand.

Sales rose to 5.59 billion euros (S$8.18 billion) in the three months to the end of December, said the company that also owns Swiss watchmakers Jaeger-LeCoultre, IWC and Piaget.

The Q3 figure exceeded the 5.48 billion euros forecast by Barclays and 5.44 billion euros forecast by the RBC, but fell short of the 5.7 billion euros forecast by Zuercher Kantonalbank.

Europe posted a sales decline of 4 per cent during the quarter, Richemont said, although all the company’s other regions posted sales increases.

When currency movements were removed, Richemont’s overall sales increased by 8 per cent in the quarter, a slowdown from the 12 per cent increase in the previous six months.

The luxury sector has been buffeted in recent months by persistent inflation, high interest rates and more expensive mortgages in the United States sapping the appetite of customers to splash out.

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A slower-than-expected recovery in China after the Covid-19 shutdowns and weak consumer sentiment have also weighed. REUTERS