The Stock Market Plunged 8%, Causing Panic Among Investors.

The group's performance in the second half of this year is worrying.

According to the latest report from London, the profit growth of the first half of the group has increased by 22%, but it will be difficult in the second half of the year.

In October, the turnover declined by 1% in the Asia Pacific region and the low growth rate in Europe and Japan.

The fall in turnover in October, based on the real exchange rate, fell by 1%, which was 6% on a constant exchange rate basis, which caused panic among investors.

The group's share price fell 8.2% to 79.50 Swiss francs per share.

On Friday, the group announced that Cartire CEO Stanislas de Quercize had resigned for private reasons.

Former LVMH Cyrille Vigneron, Japan's president, will be his successor.

In addition, De Quercize will become chairman of the French group.

In the first half of this year, the peak turnover increased by 14.7%, mainly benefiting from the surging growth of the group's self owned stores and jewelry category.

Among them, jewelry category currently occupies 1/3 of the group's turnover.

The company is facing a decline in demand in the wholesale sector, mainly due to the decline in watch sales in the Asia Pacific region.

A data message worth noting is that Swiss watch exports fell by 7.9% in September. Due to the continued weakness of Asian economies, the Swiss watch industry is undoubtedly a major blow. Asia is the most important market for Swiss watches, with exports accounting for more than 50% of the total export volume.

According to the Swiss Watch Industry Federation, the Swiss watch exports totaled 1 billion 800 million Swiss francs, or about $1 billion 850 million.

At present, there is no sign of improvement in sales in Hongkong, with a drop of 18.2%, while in mainland China, 13% and 17.6% in the US, Singapore and UAE.

Sales in Taiwan and other places also fell sharply.

The Federation said that in September this year was the most serious monthly decline in five years. This negative impact has spread to markets outside Asia and is expected to be unoptimistic at the end of 2015.

During the reporting period, the company's profit was 1 billion 100 million euros ($1 billion 220 million), of which 22% gained from better currency exchange rate trends, as well as cost control and price adjustment.

Johann Rupert, chairman of the group, said its performance in the first half of the year was "satisfactory". He added that the decline in wholesale demand came mainly from the Asia Pacific region.

As the Chinese government continues to suppress

Earlier, China's stock market plummeted and tourism demand of Chinese tourists changed.

In a statement last Friday, Johann Rupert said that tourism consumers are still the key guarantee for group turnover. Besides, the brand of its group is responsible for pforming this trend into actual performance in major markets.

Johann Rupert pointed out that the growth rate of the company has slowed down in the first half of this year, a decrease of 1% on the basis of the real exchange rate and a decrease of 6% on the basis of a constant exchange rate.

"The business model adopted in the first six months in the regional market, product and channel mix has been strengthened in October, and low growth in Europe and Japan has offset the continued weakness in the Asia Pacific region and the Americas."

In the second half of the year, the Group expects to be faced with continuous performance challenges, especially in the wholesale sector.

Johann Rupert stressed: "in the long run, we remain optimistic. The demand for consumers in the fashion retail environment is still healthy, and they still yearn for manual customization and quality products."

According to the results of this report, Exane BNP Paribas manager Luca Solca said that the performance of the group has proved that luxury goods are not only facing a difficult demand environment, but also likely to end in 2015.

He disclosed that the performance in October was not satisfactory. Hongkong and Macao were the main causes of the negative impact, especially in the watch category, the operating profit rate was declining, jewelry category performance was moderate, and the decline was relatively low.

But he adds that it can be reassured that the group can maintain its inventory level and strong cash flow.