Pandora’s charm is fading. The Danish jewellery maker, which remains without a chief executive, missed both profit and sales expectations in the third quarter and revised down its outlook for 2018 sales growth for the second time this year.
Chief financial officer Anders Boyer called the result “unsatisfactory” in a statement on Tuesday, and revised down full-year revenue growth guidance to 2-4 per cent. In August, the jeweller cut this growth outlook to a range of 4-7 per cent, from a prior estimate of 7-10 per cent, and cut its forecast for a key profit margin.
Third-quarter revenues of DK5.0bn were 3 per cent below last year’s, while earnings before, interest, tax, depreciation and amortisation plummeted 26 per cent to DK1.5bn. Ebitda margins fell to 29 per cent from 38 per cent last year. Net income fell to Dk951m from Dk1.4bn in the same period last year.
Shares fell 5 per cent in early trading on Tuesday, bringing their loss for the calendar year to date to almost 50 per cent.
Analysts at brokerage Olivetree said mentions of Pandora’s products on social media had fallen 80 per cent in the past two years, while those mentions there were had been “overwhelmingly” negative.
Pandora also announced plans to reduce new store openings. “We have taken the first major step in the programme today by changing our network expansion plan. We have confidence in a strong future for Pandora and will use 2018 and 2019 to re-set the business,” said Mr Boyer.
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