Italy’s Salvatore Ferragamo said on Tuesday that operating profit this year would be at the lowest end of current analyst estimates after revenues fell 7.2% at constant exchange rates in the third quarter, hit by weak demand in Asia.

The slowdown in demand for luxury goods, especially in mainland China, is making the group’s turnaround harder.

“Decreasing consumer confidence is most notable in Asia Pacific, which has been the main negative driver of our sales performance,” Chief Executive Marco Gobbetti said in a post-results call with analysts.

Gobbetti later quantified the lowest expectations for operating profit at around 30 million euros ($32.7 million).
Revenues totalled 221 million euros in the third quarter, below analysts’ expectations of 229 million euros, according to a consensus cited by analysts.

Net sales in the Asian Pacific area, which accounts for around 31% of Ferragamo’s total revenues, declined 20.5% in the period.

“The current context adds pressure on our top-line and profitability, therefore delaying the timing of the delivery of our financial objectives” Gobbetti said in the statement.

Ferragamo’s peers are also facing tough times.

Global luxury bellwether LVMH, whose portfolio spans Louis Vuitton and Dior fashion and accessories, Tiffany & Co jewellery and Sephora cosmetics, said on Tuesday its third quarter sales fell 3%.