Jewellery retailer Pandora has reported “weak” financial results for the first quarter of 2019, impacted by the commercial reset initiated as part of its ‘Programme NOW’.
Total like-for-like sales-out growth (like-for-like) was -10%, driven by lower traffic in physical stores, and online like-for-like sales was 7%. Organic growth ended at -12% reflecting the decrease of wholesalers’ inventory partly driven by the reduced sell-in packages.
EBIT margin, excluding restructuring, costs was 22.5%, which was negatively impacted by operational deleverage (partly non-recurring). According to the group, the commercial reset will include fewer promotional activities and reduced size of sell-in packages.
Alexander Lacik, president and CEO of Pandora, said: “I’m very excited to join Pandora. We have some very strong fundamentals in terms of a world-class supply chain, a strong product proposition as well as a deep reaching distribution network that gives consumers all around the globe quality access to Pandora.
“The brand as well as the company has reached a point of maturity and it is not without some serious challenges. The recently announced transformation programme NOW, which I fully support, is a great transition into the future.“
Anders Boyer, CFO of Pandora, added: “Programme NOW is progressing rapidly and is creating a real transformation of our business, culture and organisation. As expected, the first quarter was characterised by continued weak like-for-like further burdened by our deliberate commercial reset.
“While the first quarter emphasises the need for our planned brand re-launch, it is encouraging to see that our initial commercial pilots and marketing tests to Reignite a Passion for Pandora show good results.”