Pandora Slashes Sales Forecast
November 05, 2019
RAPAPORT... Shares in Pandora dropped 18% Tuesday after the Danish jeweler lowered its full-year revenue outlook.
The retailer reduced its forecast to a decline of 7% to 9%, from its earlier range of -3% to -7%, despite efforts to reignite sales with its brand relaunch. The decrease was due to a deliberate reduction in promotions in an effort to strengthen its brand, as well as disappointing results in China, it noted.
Global sales fell 11% year on year to DKK 4.42 billion ($655.5 million) in the third quarter, while revenue in the US slid 18% in local currency and sales in China dropped 8%. The company reported a loss of DKK 119 million ($17.7 million) compared with a profit of DKK 951 million ($141.2 million) during the same period a year ago.
Consumers responded positively to its new initiative, the company noted. In the first month following the October 3 launch of its Pandora Me collection, featuring Millie Bobby Brown, the company sold more charms per bracelet than it had for its Moments collection, which had previously been its most popular line.
“[The third quarter] was an important milestone for Pandora,” said CEO Alexander Lacik. “Our brand initiatives that started in late August receive[d] good feedback from consumers, and the early positive indications are supporting our expectations for solid Christmas trading. We continue to believe that we will see an improvement in like for like in [the fourth quarter], although the exact magnitude is clearly subject to uncertainty.”
Image: The new Pandora store redesign. (Pandora)
Article originally published on Diamonds.net here