Jewellery brand Pandora has reported a 10% drop in like-for-like sales in its third-quarter results.
Overall earnings over the quarter, before interest and tax, fell by 25%. Meanwhile, the company’s organic growth for the year is expected to land between -7% and -9%, despite previous forecasts of a growth between -3% and -7%.
Company shares plunged 13% today in the wake of this profit warning.
Alexander Lacik, chief executive of Pandora, said he has made efforts to “assure” investors the decline is not permanent, and rather the short-term result of initiatives to revitalise the brand.
Efforts were launched to rebrand the company and clean up inventory earlier this year, with such initiatives as Programme Now hoping to garner newfound consumer interest in their products.
Despite the poor figures and declining sales, Lacik said: “The third quarter was an important milestone for Pandora. Our brand initiatives that stated in last August received good feedback from consumers, and the early positive indications are supporting our expectations for solid Christmas trading.
“We continue to believe that we will see an improvement in like-for-like in the fourth quarter, although the exact magnitude is clearly subject to uncertainty.”
He added: “Third quarter financial results were marked by our deliberate commercial reset and we will continue to make any necessary decisions that support the long term health of Pandora.”
Deborah Aitken, a senior analyst at Bloomberg Intelligence, said: “While not a quick fix, Pandora’s rebranding strategy will likely rekindle desirability for the name in 2020.
“New designs, collaborations and fewer promotions will aid its jewellery charms offer. A store and product realignment includes a smaller retail footprint and inventory buybacks.”