Remy Cointreau SA has revised its annual sales guidance downwards due to weak demand in the US and China, where consumer spending remains low.

The French Cognac producer now expects a significant decline in organic sales for the year, which is a departure from its previous expectations of a gradual recovery.

The company reported a 16.1% decrease in organic sales for the second quarter ending in September, which was below analysts' estimates.

This decline highlights the ongoing challenges in key markets as consumers continue to tighten their budgets.