Pandora revenues slump in Q2 results           

Pandora has reported revenues of DKK 2.87bn (£348m) in its second-quarter of trading, down from DKK 4.69bn (£569m) during the same period last year.

Gross profit also decreased from DKK 3.5bn (£424m) to DKK 2bn (£242m), and Pandora now expects organic growth to be down 20% in 2020. The full-year EBIT-margin is also expected to be between 16% and 19%.

Pandora said the retail environment continues to be subject to uncertainty due to the Covid-19 development, as sell-out growth improvement has stalled in Q3 following new surges in virus.

However, since the outset of the Covid-19 outbreak, Pandora said it has initiated “forceful initiatives” to manage through the crisis in a socially responsible way.

During the re-opening phase, it said consumer interaction with the brand has been “encouraging” with continued positive response to Pandora’s commercial initiatives unfolded and executed in continuation of the brand relaunch on 29 August 2019.

Alexander Lacik, president and CEO of Pandora, said: “Q2 2020 will not be forgotten anytime soon. Covid-19 has changed our societies and challenged global brands around the world. The pandemic may leave a lasting effect on consumer behaviour, our ways of working and use of technology.

“Pandora’s business model has proven its resilience during the crisis, and our consumers have continued to engage actively with the brand despite closed stores. I am proud of how our employees have been coping with the challenges while at the same time finding creative ways to identify opportunities in times of change.”