Pandora posts ‘weak’ Q1 results

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.”

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