RAPAPORT... Pandora’s share price slumped 8% Tuesday after the jewelry
retailer reported a drop in profit and a smaller increase in revenue than
expected.
While sales grew 12% to $766.2 million (DKK 4.83 billion) in
the second quarter, this was below the $778.1 million (DKK 4.9 billion) that
analysts had estimated, according to a Reuters poll. Net profit fell 10% to
$173.9 million (DKK 1.1 billion) for the period, Pandora said in a Tuesday
statement.
US sales slid 2% in local currency, the company reported.
General mall traffic dropped by around 5% in the quarter, but Pandora’s US
stores are mainly in high-quality malls and suffered less from these declines,
it noted.
“The retail environment in the US remains challenging,” CEO
Anders Colding Friis said, adding that the company’s concept stores, or Pandora-branded
retail locations, had enjoyed improved performance.
“Additionally, we are rolling out a number of initiatives to
strengthen our US business even further,” the executive said.
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