Q3 sales down underlying 23.5, better than expected
FY sales seen at lower end of guidance range
Shares jump 13

Jan 26 Reuters Shares in Remy Cointreau jumped 13 on Friday after the French spirits maker beat thirdquarter sales expectations, citing a relative improvement in the United States where it has struggled with high levels of unsold stock.

However, the group also said its annual sales decline would likely be at the lower end of its guidance range of 15 to 20.

Remy was forced to cut its fullyear guidance in October amid falling U.S. sales following a postCOVID boom, leaving wholesalers and retailers there with high inventories. Sales growth in China also lagged expectations amid a tough economy.

On Friday, it said it saw a significant improvement in the U.S. from the previous quarter, but reiterated it did not expect sales to return to growth before the 202425 financial year.

Fullyear sales growth in China would be tempered by a slower than expected economic recovery, it added.

Remy had already flagged sharp destocking in the country in the quarter ahead of the Chinese New Year in February, which chief financial officer Luca Marotta said was temporary.

However, he added that underlying performance in the United States and China the group39;s two key markets for coganc was close to Remy39;s most cautious scenario.

Jefferies analyst Edward Mundy said in a note that key questions remained about the duration of destocking in China and a return to normality…