RAPAPORT... Sales at Pandora improved towards the end of the second quarter as the majority of its stores reopened and consumer traffic increased following the coronavirus lockdown.
“The better-than-expected financial performance is a result of faster reopening of markets, slightly quicker traffic recovery to reopened stores, and continued strong online performance,” the company said Wednesday.
As of June 30, the Danish jeweler had reopened 86% of its stores, including most of those in the US, China and its five other key markets. While safety guidelines are impacting the number of customers the company can serve, traffic to the stores has been improving, Pandora noted.
Total sales fell approximately 40% during the period ending June 30 due to the impact of the pandemic and forced store closures early in the quarter. However, the company saw a partial recovery through May and June, with June sales “materially better” than the previous two months, it said. Online sales soared 176% for the period.
The company expects earnings before interest and taxes (EBIT) to be flat year on year, up from the “significant negative” figure it had predicted in May.
If sales growth continues on its current trajectory and there is no further lockdown in key markets, Pandora expects EBIT to be a double-digit figure for the second half. However, the company does not plan to issue formal financial guidance for 2020 until the market stabilizes.
Image: A brooch from the PandoraMe collection. (Pandora)
|
|
|
|
|