Cartier owner Richemont posted Friday a 20-percent drop in net profit for the first half of the year as sales sank in China, whose economic slowdown has hit the luxury sector.

Richemont said its profit after tax reached 1.7 billion euros ($1.8 billion) in the six-month period ending in September, lower than expected by analysts polled by Swiss news agency AWP.

Global sales fell one percent to 10.1 billion euros

Sales from the Asia-Pacific region were down by almost a fifth while all other regions in the world posted “solid growth”, Richemont said in a results statement.

Citing “reduced consumer spending” in China, Richemont said growth in other Asian countries was “more than offset” by a double-digit drop in sales in the world’s second biggest economy.

Last month, French group LVMH, the world’s biggest luxury company whose brands include Louis Vuitton, Dior and Bulgari, reported a 4.4 percent drop in third-quarter sales.

Gucci owner Kering said its sales sank 15 percent in the same quarter due to slowing consumer spending in China.

Article Source : fortune Website