CollectionsApr 26, 2024
Piece of the Week: Jacquie Aiche’s Starry Galaxy NecklaceThe necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
FinancialsAug 20, 2019
Pandora’s Q2 Sales Dip Ahead of Brand Relaunch
The Danish jewelry company’s turnaround plan includes revamped stores, a redesigned logo, a new slogan and a simplified portfolio.
Revenue from Pandora’s beads and charms declined in the second quarter. The upcoming autumn collection will include an O-shaped pendant, giving consumers the ability it wear its beads, like the one pictured above, and charms on a necklace or clip them onto bags or jeans. (Photo courtesy of Pandora)
Copenhagen, Denmark—Pandora’s like-for-like in-store sales fell double digits in the second quarter, including a 6 percent decline in the United States.
Quarterly revenue totaled 4.69 billion Danish kroner ($697.2 million), slipping 3 percent compared with 4.82 billion kroner ($716 million) in the second quarter of last year.
Like-for-like in-store sales were down 10 percent as foot traffic declined. In contrast, like-for-like online sales jumped 22 percent.
As in the first quarter, in-store sales saw a greater decline at the wholesale level (down 14 percent) than at Pandora-owned retail stores (down 7 percent).
By market, quarterly revenue in the U.S. was flat at 1.04 billion DKK ($154.4 million) while like-for-like sales fell 6 percent. The U.S. remains Pandora’s top market, accounting for 22 percent of global revenue.
Quarterly revenue in China was up 9 percent while like-for-like sales fell 4 percent. Pandora released a 15-piece Peach Blossom collection exclusive to the Chinese market in April followed by a pop-up shop marketed via WeChat, a popular Chinese messaging app.
The company saw improvement in the key markets of the United Kingdom and Italy after increasing marketing efforts in the areas, including more social media and TV campaigns.
Like-for-like sales in the U.K. were down 8 percent in the second quarter while like-for-like sales in Italy dipped 10 compared.
Following the positive results, Pandora said it plans to increase its marketing investments in France and Australia in the second half of fiscal 2019.
By category, bracelet sales were down 2 percent while ring sales dipped 6 percent.
Revenue from its necklaces and pendants segment sank 14 percent in the second quarter despite seeing double-digit growth in the first quarter.
The earrings segment was the only category to see growth, increasing 1 percent.
Pandora said Tuesday that it plans to simplify its product portfolio, reducing its offerings by approximately 30 percent.
The company said since 2015, it has consistently added more designs than it has discontinued leaving it, simply, with too much product that isn’t selling.
“As an example we have, I think, 150 different variations of a heart on a charm. And when you speak to customers, they clearly don’t see the incremental value,” CEO Andrew Lacik said in an interview with Reuters.
In a company presentation, Pandora pointed to a “blurred” brand experience, weak initiatives on charm collecting, executional inconsistency, and “overpush,” which refers to increased promotional activity that leads consumers to wait for the next sale rather than pay full price, as its main problems.
The
Editors' Picks
Sponsored by
Danish jewelry company’s shares were on the rise following the release of its second-quarter results Tuesday despite the double-digit dip in like-for-like sales.
“I think that investors are reacting to the correct diagnosis of the challenges in the company,” Sydbank analyst Søren Løntoft Hansen told Reuters.
For the year ahead, Pandora affirmed its fiscal year financial guidance, expecting organic growth to decline 3-7 percent with like-for-like sales improving slightly.
The company is in the midst of Programme NOW, its two-year turnaround plan that aims to cut costs and revitalize the brand.
On Tuesday, Pandora upped the estimated spend on its restructuring to around 2 billion Danish kroner ($297.1 million), compared with the previous estimate of 1.5 billion Danish kroner ($222.9 million).
The company will kick off its brand relaunch on Aug. 28 with an event in Los Angeles, unveiling its new products and revamped store layout and design.
As its charms segment continues to decline, the upcoming autumn collection will include the “O carrier,” a pendant that will allow consumers to wear their Pandora charms on a necklace or clip them onto bags or jeans.
The brand will also introduce a new logo, monogram, company marker and slogan: “We give a voice to people’s loves – Passions, People & Places.”
The store redesign rollout will take place over the second half of 2019 into next year, with the first rebranded store openings in the U.K. followed by stores in key markets including China and Italy.
“I think that investors are reacting to the correct diagnosis of the challenges in the company,” Sydbank analyst Søren Løntoft Hansen told Reuters.
For the year ahead, Pandora affirmed its fiscal year financial guidance, expecting organic growth to decline 3-7 percent with like-for-like sales improving slightly.
The company is in the midst of Programme NOW, its two-year turnaround plan that aims to cut costs and revitalize the brand.
On Tuesday, Pandora upped the estimated spend on its restructuring to around 2 billion Danish kroner ($297.1 million), compared with the previous estimate of 1.5 billion Danish kroner ($222.9 million).
The company will kick off its brand relaunch on Aug. 28 with an event in Los Angeles, unveiling its new products and revamped store layout and design.
As its charms segment continues to decline, the upcoming autumn collection will include the “O carrier,” a pendant that will allow consumers to wear their Pandora charms on a necklace or clip them onto bags or jeans.
The brand will also introduce a new logo, monogram, company marker and slogan: “We give a voice to people’s loves – Passions, People & Places.”
The store redesign rollout will take place over the second half of 2019 into next year, with the first rebranded store openings in the U.K. followed by stores in key markets including China and Italy.
More on Financials
The Latest
Events & AwardsApr 26, 2024
AGS Conclave and GIA Symposium Are ConvergingThe two organizations will host a joint event, “Converge,” in September 2025.
SourcingApr 26, 2024
Anglo American Reportedly Shopping De Beers as BHP Eyes Anglo Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
Weekly QuizApr 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition WatchThe Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to JaredThe three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
CrimeApr 24, 2024
Jewelry Crime Declines Significantly, But Dollar Losses Remain High A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
CollectionsApr 24, 2024
Pippa Small Announces ‘Venus’ CollectionInspired by the Roman goddess of love, the designer looked to the sea for her new collection.
Events & AwardsApr 24, 2024
JCK Industry Fund Announces 2024 Grant RecipientsThe selected nine organizations have outlined their plans for the funds.
SourcingApr 24, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
WatchesApr 24, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s DayEmmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
GradingApr 23, 2024
GIA Has a New Book About William RuserRuser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati PrinslooThe “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024 Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’The overhaul includes a new logo and enhanced digital marketplace.
MajorsApr 22, 2024
Signet Raises Nearly $9M for St. Jude Children’s Research HospitalThe money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed FormFrom now through mid-May, GIA will be offering the reports at a 50 percent discount.
