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Restructuring Efforts Boost Pandora
Aug 20, 2019 10:21 AM
By Rapaport News
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RAPAPORT... Shares in Pandora rose 10% in early trading Tuesday as sales
declines narrowed in key markets and restructuring efforts led to signs of
recovery.
Global sales fell 2.6% year on year to DKK 4.69 billion
($697.2 million) in the second quarter, the Danish charm maker reported
Tuesday. Same-store sales — at locations open for more than a year — fell 6% in the US, while sales in China slipped 4%. Sales dropped 10% in Italy and slid 8% in the UK, two important markets that saw sharper declines in the previous quarter.
In the three months ending June 30, Pandora saved
approximately DKK 125 million ($18.6 million) through cost-cutting
initiatives, which included decreasing its workforce by a net 2,200 employees,
as well as reducing the number of days on which it offered promotional sales by 32%, it
said.
As part of the revamp, the company also plans to adopt pink as its new main color
across all points of contact with customers. It will also introduce several
new jewelry collections targeted primarily at young women, and will offer charms based on characters and items from Harry
Potter and Frozen II.
Additionally, the jeweler will cooperate with
six global influencers who have significant reach on social media, including
Nathalie Emmanuel, an English actress and Instagram influencer with more than
5.5 million followers.
“In the quarter, we have progressed rapidly on a number of
important commercial initiatives which we can soon reveal and showcase to our
consumers as part of our brand relaunch on August 29,” said Pandora CEO
Alexander Lacik. “Our preparations and marketing pilots spur confidence in our
direction. By improving execution with focus on Pandora’s core proposition, we can improve
our relevance for consumers around the world. This is the first important step
in our journey towards positive growth.”
Global net profit for the quarter fell 50% to DKK 526
million ($78.1 million). The company is on track to reach its guidance of a sales decline ranging from 3% to 7% for the full year, it said.
Image: A Pandora store in Manhattan, NY. (Shutterstock)
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Tags:
Alexander Lacik, Frozen II, Harry Potter, Nathalie Emmanuel, Pandora, Programme Now, Rapaport News
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