ZURICH, Jan 18 Reuters Cartier jewellery owner Richemont painted a mixed picture of the luxury sector in its latest results on Thursday, reporting a sales decline in Europe but a big increase in China.

The Swissbased company said sales in constant currencies, which remove foreign exchange fluctuations, fell 3 in Europe as higher sales to Chinese tourists and domestic customers failed to compensate for lower spending by travellers generally, particularly from the United States.

Sales increased by 25 in China, including Hong Kong and Macau, the company said, countering concerns about a slowdown in the region as its economy cools.

Shares in the company were indicated to open 4.6 higher in premarket activity on the Zurich exchange, with Bernstein analyst Luca Solca describing the results as a comfortable beat.

With currency effects removed, Richemont39;s sales increased by 8 in three months Dec. 31, better than the 5 rise in the previous three months but lower than the 19 rise in the April to June period.

The luxury market has been buffeted in recent months by persistent inflation, high interest rates and more expensive mortgages in the United States while a slower than expected recovery in China after COVID19 shutdowns have also weighed on the sector.

Despite what Richemont described as an uncertain economic and geopolitical environment, the company39;s jewellery business which also includes Van Cleef Arpels continued to do well, with sales up 12.

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