Reporting its results for Q4 2019, Pandora said that its Programme NOW “showed solid results as the growth momentum improved materially”. However, growth was still in the negative spectrum with -4% reported for like-for-like in Q4 2019 and -8% for FY 2019; organic growth was -1% for Q4 2019, and -8% for FY 2019.

Pandora’s revenue for Q4 2019 stood at DKK 7,956 million; as compared to DKK 7,890 million for the same quarter of the previous year. The Company’s revenue for FY 2019 amounted to DKK 21,868 million as against DKK 22,806 million for the previous year.

“Italy, France and Germany delivered positive like-for-like, and growth momentum in the US and the UK also improved,” the Company stated. “The momentum change substantiates the Programme NOW diagnosis and turnaround plan and demonstrates that Pandora is on the right path to return to sustainable growth.”

After having reviewed the Company’s strategy, Pandora confirmed the direction previously communicated. “Pandora will continue to open stores in white-space areas while adopting a more rigorous and systematic approach to the store network,” the Company said. “Additionally, Pandora will step-change investments in the online channel while opportunistically considering use of additional online market-places.”

The Company was optimistic that in 2020, the turnaround initiatives will continue to create “a much healthier foundation” for long-term sustainable performance.

Pandora expects growth performance to improve from -8% like-for-like in 2019 to negative “mid single-digit” like-for-like in 2020. “The like-for-like development in 2020 is a result of further reduction of promotional discounting activity, expected weak underlying performance in China and an underlying performance improvement in the majority of the other markets,” Pandora explained.

The Company says net store openings/closings and inventory changes are expected to have negligible impact on revenue; and expects the organic growth to be in the range of -3 to -6%. However, the Company made it clear that this financial guidance does not include any impact from the coronavirus.

Alexander Lacik, President and CEO of Pandora, says: “With 2019 behind us, we have completed the first year of our 2-year turnaround. We have made significant changes in a very short time, and the results in Q4 give us confidence. Consumers are responding positively to our commercial initiatives. Like-for-like is improving, and we have built a healthier foundation for the business. In 2020, we will continue to invest significantly to drive the topline, strengthen our organisational capabilities and pursue further cost reductions to fund our growth initiatives. Our priority remains to do what is right for the company in the long-term.”