The Swiss jeweler and watchmaker Richemont, which also owns Cartier, recorded a significant sales decline in China in the last quarter. This makes Richemont the latest luxury company to suffer from weak demand in a once-important growth market.

In the Asia-Pacific region, particularly in China, Hong Kong, and Macau, sales fell by 27 percent in the first quarter of the fiscal year. This reflects the low consumer confidence in these regions. Globally, however, Richemont was able to record revenue growth, except in the Asia-Pacific region.

Richemont is not alone with these challenges. On Monday, luxury brands Burberry and Swatch also reported difficult conditions, especially in China, while Hugo Boss lowered its sales forecast for the year.

Chinese consumers are curbing their spending amid a general economic downturn, exacerbated by a real estate market crisis. For years, wealthy Chinese buyers have significantly contributed to growth in the luxury segment, but now they are holding back on expensive clothing, bags, and accessories.

In other parts of the world, luxury companies, after years of robust results and a post-pandemic consumption spree, are now experiencing normalized growth trends. Inflation and high interest rates are also weighing on consumers.

Brands targeting the wealthiest customers remain relatively resilient, while companies catering to less affluent, younger customers face tougher times. These consumers tend to cut back on spending more during uncertain times.

LVMH Moet Hennessy Louis Vuitton, a key industry indicator, will announce its half-year results next week. This will either bring relief to investors or exacerbate concerns about the sector's health. French competitors Hermes and Gucci owner Kering will also release their results in the coming days.

In the quarter that ended on June 30, Richemont achieved sales of 5.27 billion euros, compared to 5.32 billion euros in the same period last year. This result was largely in line with analysts' expectations of 5.28 billion euros, according to an estimate by Visible Alpha.

Adjusted for currency fluctuations, the company's total sales increased by 1 percent in the quarter, which Richemont described as resilient. Sales in Japan rose by 59 percent adjusted for currency, and in the Americas by 10 percent.

The revenue declines in China, Hong Kong, and Macau amounted to 27 percent in the quarter.

As Analysts Expected, Richemont Showed Varied Performances in Its Two Main Divisions. The Company's Core Business, the Jewelry Maisons, Which Include Cartier and Van Cleef & Arpels, Recorded a Currency-Adjusted Sales Increase of 4 Percent to 3.66 Billion Euros. Analysts Had Forecasted Sales of 3.64 Billion Euros for This Important Division.

This performance is expected to provide some relief, especially in a challenging luxury segment that shows different trends in brands and product categories, wrote RBC Capital Markets analyst Piral Dadhania in a research note.

In early European trading, Richemont shares rose by about 1 percent.

The specialists for watches of the group, however, recorded a currency-adjusted sales decline of 13 percent to 911 million euros. This division has a strong presence in the Asia-Pacific region. The result was below analysts' expectations of 996.6 million euros.

The division that includes brands such as Piaget and Vacheron Constantin was expected to have a weak quarter following recent weaker Swiss watch export data.

Richemont's update came after the company appointed new leaders for its heavyweight brands Cartier and Van Cleef & Arpels earlier this month, representing a restructuring of the core jewelry division following Nicolas Bos's replacement of Jerome Lambert as group CEO.