EditorsNov 22, 2024
Out & About: Inside the CD Peacock MansionStep inside the nearly 21,000-square-foot suburban Chicago jewelry store with Editor-in-Chief Michelle Graff.
FinancialsNov 07, 2018
Pandora Cuts Guidance Again After Poor Q3, Weak Start to Q4
U.S. sales were down 12 percent, with strong sales online not enough to offset the company’s in-store performance.
Pandora introduced “Reflexions” in October, a mesh-style collection that features its first new bracelet in five years. The company said Tuesday amid poor third quarter results that Reflexions “has been very well received by the consumers.”
Copenhagen, Denmark—Pandora reported Tuesday that U.S. sales dropped alongside worldwide sales in Q3, causing the company to cut its fiscal guidance for the year again.
Total sales of Pandora jewelry in the United States fell 12 percent year-over-year in the third quarter to DKK 1 billion ($153.2 million).
Like-for-like sales rose 4 percent due to online sales, though the company noted that the performance of its e-commerce site was not enough to override slow in-store sales and the changing in the timing of shipments. The Christmas collection was in stores already in the third quarter 2017 but won’t ship until the fourth quarter this year.
Globally, Pandora saw revenue decrease 3 percent in local currency to DKK 5 billion ($765.8 million). Like-for-like sales growth also slipped 3 percent.
Gross margin fell from 74.2 percent to 72.3 percent, and EBITDA was DKK 1.4 billion ($214.4 million) down from DKK 2.0 billion ($306.3 million) in the third quarter 2017.
Revenue from Pandora-owned stores was up 34 percent in local currency, but that was due mainly to new store openings; like-for-like growth only increased 1 percent.
E-store sales grew 52 percent and now account for 8 percent of total revenue, up from 5 percent a year ago.
Revenue from the company’s wholesale channel fell 27 percent, impacted by Pandora buying back franchise stores over the past year and closing more accounts at independent jewelers, and wholesalers cutting back on inventory due to poor sales.
Following what Chief Financial Officer Anders Boyers called an “unsatisfactory” third quarter and a “weak” start to the fourth, the company lowered its expectations for the year.
It said it now expects full-year revenue growth of 2 to 4 percent, down from the 7 to 10 percent predicted at the beginning of the year and the revised forecast of 5 to 7 percent sales growth delivered in the second quarter.
Pandora also announced Tuesday it was launching a turnaround plan that includes buying back fewer franchise stores, opening new stores only in markets that are not oversaturated like China, India and Latin America, focusing on omnichannel and cutting costs companywide.
After laying out an ambitious plan that included aggressive store growth and branching out from its core beads and charm bracelets into new jewelry like plated karat gold pieces, the Copenhagen-headquartered company finds itself in a state of disarray.
Sales continue to disappoint and Pandora is searching for a new CEO; it
will be the company’s sixth leader since going public in 2010.
The last CEO, Anders Colding Friis, stepped down at the end of August after less than four years on the job. Boyers and Chief Operating Officer Jeremy Schwartz are running the company together until a replacement is found.
Following Friis’ departure, rumors began to swirl that a private equity firm will acquire Pandora and take it private.
The last CEO, Anders Colding Friis, stepped down at the end of August after less than four years on the job. Boyers and Chief Operating Officer Jeremy Schwartz are running the company together until a replacement is found.
Following Friis’ departure, rumors began to swirl that a private equity firm will acquire Pandora and take it private.
More on Financials
The Latest
CollectionsNov 22, 2024
Piece of the Week: Xander Jane’s ‘Spiked’ Pearl StudsThese punk-inspired earrings from the new Canadian brand’s debut collection reveal the alter ego of the classic pearl.
SourcingNov 22, 2024
Facets of Fire Expands to Include Pear, Marquise DiamondsThe company brings its nanotechnology to two new fancy cuts for diamonds that feature its signature color and brilliance.
Brought to you by
Navigating Cybersecurity: Essential Guidance for JewelersFrom protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.
Supplier BulletinNov 21, 2024
Tasha R Releases 2025 Labbelle Lab Diamond Jewelry CatalogSponsored by Tasha R
Weekly QuizNov 21, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsNov 21, 2024
Gold Watch Gifted to Titanic Rescue Ship Captain Sells for $2MThree Titanic survivors presented him with the personalized Tiffany & Co. timepiece about a year after the tragedy.
MajorsNov 21, 2024
Harris Jewelry Ordered to Reopen Claims Portal for Refund RequestsA federal court found that the jewelry store chain violated terms of the settlement reached after it was accused of defrauding customers.
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYCThis fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
CollectionsNov 21, 2024
Channel Elphaba in Muse’s ‘Have a Heart x Cynthia Erivo’ CollectionCynthia Erivo chose Dreams of Hope, an organization dedicated to empowering LGBTQA+ youth, as the charity for this year’s collection.
MajorsNov 21, 2024
Rocksbox Opens Pop-Up Store in San FranciscoThe new space was designed to evoke a warm, inviting vibe.
IndependentsNov 21, 2024
Mary Moses Kinney Is Now Part of The Edge’s Team Kinney, who spent nearly 30 years at IJO, has been hired to head Abbott Jewelry Systems’ new virtual marketplace.
CrimeNov 20, 2024
Sotheby’s to Pay $6.25M Settlement to NY State for Alleged Tax FraudThe auction house was accused of helping clients avoid paying taxes on millions of dollars’ worth of art purchased from 2010 to 2020.
Events & AwardsNov 20, 2024
Kering Debuts New Jewelry Award With Sustainability FocusThe four finalists will present their pieces at the 2025 JCK Las Vegas show.
CollectionsNov 20, 2024
Pamela Love Channels Surrealist Artists in New CollectionThe “Camera Oscura” collection showcases earring designs celebrating female Surrealist artists Claude Cahun and Leonor Fini.
Policies & IssuesNov 20, 2024
Columbia Gem House Raises $10K for Reforestation EffortsThe money will fund the planting of 10,000 trees in critical areas across Oregon, Arizona, Montana, and other regions.
Events & AwardsNov 20, 2024
The Jewelry Symposium Opens Registration, Scholarship ApplicationsThe event centered on advancing jewelry manufacturing technology will return to Detroit in May 2025.
CrimeNov 19, 2024
Woman Killed in Armed Robbery of Sacramento Jewelry StoreLocal reports identified the woman as the wife of the jewelry store owner.
AuctionsNov 19, 2024
‘A Tsar’s Treasure’ Fetches $2.9M at Sotheby’s Jewelry SaleA collection of pieces owned by Ferdinand I, the first king of modern Bulgaria, and his family, blew away estimates in Geneva last week.
MajorsNov 19, 2024
Trove Opens First US Flagship in NYCThe Australian jewelry box brand’s new West Village store will showcase new jewelers each month through its Designer in Residence program.
CollectionsNov 19, 2024
Snoop Dogg’s New Jewelry Collection Is All About Love“Lovechild” was created in partnership with Carolyn Rafaelian’s Metal Alchemist brand.
EditorsNov 18, 2024
Q&A: Helzberg CEO Brad Hampton on the Jeweler’s RebrandHampton discussed how Helzberg is improving the customer experience and why it was inspired by the company formerly known as Dunkin’ Donuts.
Policies & IssuesNov 18, 2024
Reciprocity Jewels Returns to NYC Jewelry WeekThe group will host several curated events and an exhibition of designer jewelry made with Peruvian gold traceable to the miners’ names.
CollectionsNov 18, 2024
Dolly Parton Shines in Collaboration with Kendra ScottThe collection honors the 50th anniversary of Dolly Parton’s “Love is Like a Butterfly” song, which shares a birth year with Kendra Scott.
Events & AwardsNov 18, 2024
IGI Jewelry Design Competition ReturnsThis year’s theme asks designers to take inspiration from classic fairy tales.
EditorsNov 15, 2024
Why Fine Jewelry Belongs at New York Comic ConSenior Editor Lenore Fedow makes the case for why more jewelers should be appealing to nerds at the annual event.
CollectionsNov 15, 2024
Marie Lichtenberg Battles Counterfeits with New ‘Raiz’in Scapular’ DesignsThe latest “Raiz’in” drop showcases a newly designed “Scapular” necklace and donates a portion of the proceeds to Make-A-Wish France.
WatchesNov 15, 2024
Piece of the Week: Citizen’s Commemorative Pocket WatchNo. 1 out of 100, the timepiece was created to mark Citizen’s 100th anniversary and will be auctioned off at Sotheby’s next month.
