Richemont on Monday issued a grim warning about the outlook for expensive jewellery, watches and accessories, as the world’s second largest luxury goods company said sales had fallen 12 per cent in the crucial third quarter, which covers the Christmas period.

The Geneva-based group, best known for upmarket brands such as Cartier, Vacheron Constantin and Montblanc, said it saw no let-up in what it called the toughest market conditions since its formation 20 years ago.