Jewelry maker Pandora, known for its charm bracelets, intends to make another 1,200 workers in Thailand redundant while speeding up its marketing spend as its new CEO looks to turn around the struggling jewelry maker after another disappointing quarter. The company already laid off 700 of their nearly 14,000 employees in Thailand, which is almost half of its 32,000 global workforce.
Pandora's Chairman of the Board Peder Tuborgh has told the company to start looking for someone to take over his position in 2019, as he plans to end his nearly five year tenure as the Danish jewerly maker's chair. "Once our new CEO, Alexander Lacik, has been onboarded and we start to see traction from [the new marketing and merchandising strategy] Programme NOW, the foundation for a successful brand turnaround will be in place. it will be time for me to hand over the baton to a new chairman,” Tuborgh said.
Jewelry maker Pandora, known for its charm bracelets, reported Tuesday that Q3 sales in the U.S. fell 12% year-over-year to $153.2 million (DKK 1 billion), while worldwide revenue decreased 3% in local currency to $765.8 million (DKK 5 billion). The "unsatisfactory" results prompted the company to reduce its sales and profit margin guidance for this year following revenue declines in consecutive quarters, and is now saying it expected sales in local currencies to increase by between 4 and 7 percent this year, compared with the 7-10 percent it previously projected.
Following publication of their Q2 Interim Results, shares in Pandora, the Danish maker of charm bracelets, slumped 8 percent "after the company missed analyst expectations for revenue and profits in the second quarter", writes Financial Times, adding that this makes it currently, "the worst performing stock in Europe." Despite revenue improving 12% to $767 million (DKr 4.83 billion) in the second quarter, it fell well shy of analysts’ expectations of $780 million (DKr4.91bn.
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.
In a strong indication that jewelry demand worldwide is growing strongly, Pandora reported soaring revenues and profits for the first quarter. Consequently, it raised its revenue guidance as sales soared in Europe and Asia Pacific. Revenue surged 34 percent to $725 million while profit rocketed more than threefold to almost $200 million. Pandora expects revenue in excess of $3 billion this year which would be a 19-percent increase on 2015 from a year ago.
Global jewelry giant Pandora combined social media app Snapchat with Mother’s Day in Britain to boost awareness and promote its products. Pandora asked mothers and daughters to take pictures of themselves together and to add a Pandora geofilter which was a branded Mothering Sunday message. The brand also offered users a chance to win £500 to be spent in Pandora’s flagship store in the U.K. by asking fans to share their favorite selfie with the Pandora geofilter on Twitter. Pandora has been using Snapchat to expand its user base, according to a report in Professional Jeweller.
Jewelry maker Pandora announced that the Eastern High Court in Copenhagen has acquitted the firm on all counts in a case concerning potential breach of the Securities Trading Act. The verdict concerns a case dating back to 2011 and relates to Company Announcement No. 30 of 2 August 2011, when Pandora announced a downward adjustment of its revenue growth expectations, two weeks earlier than the ordinary reporting date for the Q2 2011 results.
Company announcement: Based on the preliminary reporting, Danish jewelry designer and manufacturer PANDORA’s revenue for 2015 increased approximately 40% compared to 2014 to DKK 16.7 billion ($2.41 billion), which compares to a financial guidance of above DKK 16 billion.