Pandora Shares Drop as Charm Bracelet Maker Results Disappoint Analysts

09/08/2016 12:15

Shares in Pandora have slipped after the maker and retailer of popular jewelry reported a sales and profit miss. The firm is known for raising forecasts due to the ongoing strength of sales. Revenue for the second-quarter rose 20 percent to $645 million, but that was less than the average analyst estimate and the first such miss in more than two years. A 23-percent jump in earnings before interest, tax, depreciation and amortization was also less than expected, and that led its stock to fall by almost 7 percent on the Copenhagen exchange. However, the Danish company maintained full-year forecasts for revenue and profitability that it raised as recently as May.

Like-for-like sales fell 1 percent in the Americas region, weighed down by weakness in Brazil, Canada and the Caribbean, the company said. Growth slowed in the Asia-Pacific region, with sales gaining 51 percent in local currency terms, compared with the prior quarter’s 62 percent.