Rémy Cointreau said trading in China was even more difficult than markets had expected as it slashed its financial targets for this year after a further sales slump in its latest three months.
Second-quarter sales tumbled by 16.1% due to destocking in the US and the deteriorating market conditions in China.
The cognac maker now sees full-year sales dropping by more than 10% as opposed to a previous forecast for a "gradual recovery over the course of the year", with margins also to be hit.
Cost savings of €50 million are also planned, said the French group.
Sales in the three months to the end of September 2024 dropped to €318 million from €379 million a year earlier with all product areas seeing substantial falls.
Half-year revenues were down 15.9% at €533 million with the core cognac and liqueur divisions down by 17.9% and 12.1% respectively.
Rémy Cointreau also warned about the impact of potential tariffs of 38% on sales to China, adding it would "activate" plans to mitigate this from the next financial year if it occurs.