Richemont shares declined after the Swiss luxury-goods maker reported an unexpected decline in sales from the Americas, raising concern over how weak the US market might get.
Revenue from the Americas fell 2% on a constant-currency basis in the three months through June, the Cartier owner said Monday as it reported an overall 19% gain in sales. The stock fell as much as 7.1%, the steepest intraday drop in a year.
The luxury-goods industry is depending on a bounceback from China to counter a slowdown in the US, which Chairman Johann Rupert said in May is at risk of a downturn. Last week, Burberry Group Plc reported a drop in revenue from the Americas as the low end of the luxury market in the US weakened.
Chinese demand may also be at risk. The country reported slower-than-expected economic growth Monday, with signs of a slowdown in consumer spending. Youth unemployment in the country has been above 20% for three months, a separate report showed.
Read more: China’s Growth Disappoints, Fueling Calls for More Stimulus
The Swiss company said its jewelery sales increased 24%, meeting analyst expectations, while its specialist watchmaker division reported sales growth of 10% at constant currencies, slightly below analyst consensus forecasts.
Rival Omega maker Swatch Group AG reported stronger-than-expected first-half results last week.
Richemont said an 11% sales increase in Europe was driven mainly by resilient domestic spending as well as tourism from the US, the Mideast and China.
