By Cristina Roca
Remy Cointreau SA said Friday that third-quarter sales fell sharply, and that it was holding off on its previously-issued guidance in favor of a new strategic roadmap to be unveiled later this year.
The French spirits maker /zigman2/quotes/206802273/delayed FR:RCO -0.82% posted sales of 290.2 million euros ($321.3 million), down from EUR321.5 million a year before and significantly missing analysts’ expectations of EUR309 million, according to a consensus estimate by FactSet.
Sales for the quarter declined organically by 11%, with sales falling in all divisions.
The company’s House of Remy Martin cognac business, which accounts for the bulk of the group’s sales, was hit by falling tourism in Hong Kong, slow stock replenishment by U.S. retailers and a negative impact from changes in its distribution network, mainly in Europe, offsetting strong performance in China, the company said.
The maker of Cointreau said it “has decided to hold off on the previously provided annual and mid-term objectives” following a leadership change, and will present a new strategic roadmap during annual results reporting on June 4. Last month, Eric Vallat replaced Valerie Chapoulaud-Floquet as Remy Cointreau’s chief executive. The company had previously guided for its current operating profit to remain stable on an organic basis for fiscal 2020.