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Pandora Jewellery has released a disappointing interim report, but management remains optimistic.
Pandora Jewellery has released a disappointing interim report, but management remains optimistic.

More disappointing results for Pandora

In its first quarterly report since its high-profile ‘brand re-launch’ in August, international jewellery company Pandora confirmed global sales and revenue have fallen once again.

Notably, revenue from the US – its largest market – fell 18 per cent from 1 July to 30 September. The negative trend continued in Australia, with a drop of 22 per cent.

Alexander Lacik, CEO Pandora
Alexander Lacik, CEO Pandora
“The early positive indications are supporting our expectations for solid Christmas trading”
Alexander Lacik, Pandora

Overall, revenue was down 6 per cent from the previous report, published in August: from DDK4.7 billion ($AU1 billion) to DKK4.4 billion ($AU950 million).

Restructuring costs, reduced sales promotions and an increased marketing budget lead to losses of DKK198 million ($AU42.6 million).

As part of its ‘re-launch’ strategy, Pandora undertook store renovations and redesigned its e-commerce website, announced promotional deals with celebrities and social media influencers – including Stranger Things actress Millie Bobby Brown – and held consumer and media events to generate publicity.

Following the latest report, the Pandora share price fell 17.6 per cent, from DKK339.70 to DKK280.

Despite the disappointing results, Alexander Lacik, CEO Pandora, called Q3 an “important milestone for Pandora”.

Background » Pandora: The beginning of the end | For Pandora, arrogance is a two-edged sword

“Our brand initiatives that started in late August received good feedback from consumers, and the early positive indications are supporting our expectations for solid Christmas trading,” he said.

Lacik also noted that the company’s restructuring program – which has involved share buybacks, streamlining the product offering, and closing retail accounts – had a significant impact, but would likely strengthen Pandora Jewellery’s financial position in the long-term.

More reading:
Millie Bobby Brown’s Pandora Me collection unveiled
New direction for Pandora
Pandora reveals re-branding details as sales fall again











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Sunday, 15 December, 2019 11:41pm
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