World’s largest jewellery maker Pandora sees shares tumble as sales slow
Shares in Pandora have fallen sharply after weak in-store sales growth in the third quarter, despite the retailer lifting its full year outlook, citing strong US sales.
The Danish jewellery company’s share price fell 4.8 per cent in early trade, whilst sales at Pandora stores grew just 5 per cent in Q3, despite analysts predicting a 14 per cent growth.
However, the brand said it has continued to see strong sales in the US, its biggest market, as large government stimulus saw an increase in consumer spending.
“Revenue growth and the EBIT margin were lifted by continued strong U.S. performance and a sequential improvement in Europe as COVID-19 restrictions were eased,” Pandora said.
Pandora said overall Q3 sales came in at 4.73 billion Danish crowns ($734.92 million), exceeding the 4.67 billion expected by analysts in a poll compiled by the said.
The brand now expects organic sales growth of 18 to 20 per cent for this year, up from a previous forecast of 16 to 18 per cent.
The firm will report full third-quarter earnings on Wednesday, 3rd November.
