Financials

Key Investment Firm Slashes Pandora Holdings

FinancialsJun 04, 2019

Key Investment Firm Slashes Pandora Holdings

BlackRock Inc. reduced its shareholdings to less than 5 percent as the Danish jewelry company continues to struggle.

Pandora’s Sparkling Lion Princess Heart necklace ($225). While the jewelry company’s charms segment performed poorly in the first quarter, its necklace segment saw double-digit growth.

Copenhagen, Denmark—BlackRock Inc. has reduced its total shareholdings in Pandora to less than 5 percent, the jewelry company announced in a regulatory filing Monday.

The New York-based investment firm, which the world’s largest asset manager, held more than 5.3 million shares, or more than 5 percent, of Pandora as of April 18.

Pandora is based in Copenhagen, and The Danish Capital Markets Act requires companies there to disclose major events, similar to an 8-K filing in the United States. The Danish Financial Supervisory Authority also requires companies to disclose a short position if it owns more than 0.5 percent of a company’s outstanding shares.

BlackRock disclosed its first short position in Pandora in January 2018 after the jewelry company cautioned investors that profit growth would slow as the business grew.

BlackRock did not respond to National Jeweler’s request for comment on its decision.

Pandora has had a rough start to its fiscal year, reporting weak first quarter results as sales fell and demand waned for its charms.

Quarterly revenue slipped 6 percent to 4.80 billion Danish kroner ($719 million), with in-store traffic falling 10 percent.

The Copenhagen-based company is undergoing a two-year transformation plan titled Programme Now, looking to cut costs and revamp the brand.

The plan includes reducing the size of its sell-in packages, buying back inventory and closing under-performing stores.

Pandora announced in May that it would shutter 50 “low-margin” concept stores, including those that are underperforming or diluting margins.

Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

AuctionsApr 16, 2021
Try On This Diamond and Pearl Tiara Before It Heads to Auction

Sotheby’s created an Instagram filter for the crown, estimated to sell for up to $1.5 million.

SurveysApr 16, 2021
March Retail Sales Surge

Another round of stimulus checks helped to bolster last month’s retail sales.

CollectionsApr 16, 2021
Supplier Kim International Revives its Catalog

It showcases 2021 and 2022 styles, with most ready to ship from Dallas, Texas.

Brought to you by
4 Reasons You Need This Program for Mother’s Day

Learn how to increase customer loyalty and revenue by making JM™ Care Plan a cornerstone of your business plan.

TrendsApr 16, 2021
Piece of the Week: Anthony Lent’s ‘Lunar Galaxy’ Earrings

Colorful gems enliven a classic celestial motif.

Weekly QuizApr 16, 2021
This Week's Quiz
Test your knowledge of jewelry news from the week of April 12-16, 2021.
Take the Quiz
TechnologyApr 15, 2021
Blue Nile Hires Amazon, Timex Execs

The jewelry retailer named a new chief operating officer and senior vice president of supply chain.

CollectionsApr 15, 2021
Check Out Stone and Strand’s First Bridal Collection

All six styles are priced under $2,000.

Brought to you by
Evaluating Your Inventory For Success in 2021 

After months of pandemic-driven social distancing, restrictions and lock-downs, consumers will be excited to visit your store. Now is the time to ensure you have the right inventory on-hand to capitalize on that excitement!

GradingApr 15, 2021
GCAL Introduces Its New Cut Grade Standard, 8X

Diamonds must receive a grade of “excellent” across eight criteria to be deemed an 8X.

×