Richemont, the maker of Cartier jewellery, forecast a difficult first half after sales plunged 18 per cent in April.

The Swiss company also reported full-year earnings that missed analysts’ estimates Friday, dealing a further blow to the ailing luxury-goods industry. The shares fell as much as 5.6 per cent.

“In the near term, we are doubtful that any meaningful improvement in the trading environment is to be expected,” chairman Johann Rupert said in a statement. “Challenging comparatives will persist through September.”

The company, whose full name is Cie. Financiere Richemont, has been struggling with the strong franc and is cutting almost 100 jobs in its Swiss watchmaking operations, having reduced headcount by 500 in the past year.

Aside from weak demand in Asia, Richemont is also affected by a slowdown in tourism to Europe following the Paris terror attacks in November, a trend that analysts say may extend after the bombings in Brussels in March.

Richemont had a “weaker start to fiscal 2017 than feared,” wrote Rogerio Fujimori, an analyst at RBC Capital Markets. “”

Comparatives should get easier in the second half of the current fiscal year.”

Operating profit fell to €2.06 billion in the 12 months through March, the Geneva-based company said. That missed the average analyst estimate of €2.29 billion.

Co-chief executive officer Bernard Fornas retired at the end of March, leaving Richard Lepeu as sole CEO.

Bloomberg