Sales growth at Richemont slowed over the past 12 months as China’s authorities continued their crackdown on gift giving – but the Swiss watches and luxury goods group is forecasting that the Chinese market has turned, writes James Shotter.

In the year to the end of March, Richemont posted sales of €10.6bn, a rise of 5 per cent on the preceding year. Net profit rose 3 per cent to €2.1bn. Richemont was hit by unfavourable currency movements, but the figures still represent a sharp slowdown from the double-digit growth that the watch industry has been used to in recent years.

Much of that double-digit growth was fuelled by the rapid expansion of Chinese demand for luxury goods. However, over the past 18 months, sales in China have dropped across the watch industry as President Xi Jinping’s regime cracks down on officials who give or receive expensive gifts in exchange for political or business favours.