Investors were pleased to hear sales were up by a quarter in China, which soothed fears the country's economy has cooled.

With currency effects removed, Richemont's sales increased by 8% over the three months to the end of December.

That was better than the rise in the previous three months, but way short of the 19% rise in the April to June period.

The luxury market has been hit by persistent inflation, high interest rates and more expensive mortgages in the U.S., which all crimp spending power.

A slower than expected recovery in China after health crisis shutdowns also hurt the sector.

But Richemont's jewelry business - which also includes Van Cleef - continued to do well, with sales up 12%.

The firm shared an overall mixed picture of the luxury sector in its latest results.

Though China shone, it reported a sales decline in its European home market.

The Swiss-based company said sales in constant currencies fell 3% there.

Chinese tourists and domestic customers may have bought more in Europe,

But that didn't compensate for lower spending by travelers generally, particularly from the U.S.