By Lenore Fedow
A set of Pandora rings. The jeweler’s like-for-like sales were down in the fourth quarter and in the overall fiscal year.
Copenhagen, Denmark—Pandora’s fourth-quarter global like-for-like sales are expected to be down 4 percent, according to the Danish jeweler’s preliminary financial results.

For the fiscal year, like-for-like sales are down 8 percent.

When including the Hong Kong market, which has been in a state of unrest since the summer, like-for-like sales are down 5 percent in the quarter and down 9 percent year-over-year.

Operating margin, the ratio of operating income to net sales, is expected to be in the upper end of the guided range of 26 to 27 percent.

The unaudited results are in line with what the jeweler expected and a “sequential improvement” compared with the 10 percent like-for-like sales dip in the third quarter.

In response, Pandora lowered its financial outlook for the year as the cost of its brand relaunch and weak sales in China weighed heavy on its balance sheet.

Pandora highlighted Q4 improvement as confirmation of “the strategic direction and the effectiveness of Programme NOW,” the company’s turnaround plan.

Looking to 2020, like-for-like sales are expected to be in the negative while its operating margin, excluding restructuring costs, is expected to be lower than in 2019.

Pandora is expected to release its annual report on Feb. 4.

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