Weak sales in China at LVMH, the owner of Dior, Tiffany and more, sent a shudder through the luxury sector. Shares in LVMH dropped on Wednesday after the luxury goods giant warned about an “uncertain economic and geopolitical environment” and its latest earnings disappointed analysts.

LVMH posted a year-over-year sales decline in the third quarter, showing the continuing pressure on the luxury sector from weak Chinese spending.

The world’s largest luxury group saw its shares tumble as much as 7.5% Wednesday morning to a two-year low before ticking back up by the afternoon.

The French luxury empire said the decline in revenue during the quarter was mainly due to lower growth in Japan.

LVMH’s sales of fashion and leather goods fell for the first time since the pandemic as the industry’s biggest player was hammered by a slump in demand from Chinese consumers whose appetite for high-end purchases once seemed insatiable.