Cartier and Montblanc owner Richemont has bought back stock from retailers and has destroyed it in some cases.

The luxury group saw a slide in sales of 1% at constant currency, although in the final quarter, they slipped 5%, largely due to a poor performance from its watches division, which accounts for 46% of total group sales.

The group’s Cartier watches and specialist brands such as Piaget and Jaeger-LeCoultre are suffering from a buildup of stock in the Hong Kong and Macau stores, which has led to Richemont buying it back in order to free up the sales channel.