The Q3 2019 performance of troubled jewellery company Pandora, which has been on a path of a “commercial reset” and improvement, continued to show a downward trend.

For the period under review (Q3 2019), Pandora reported a revenue of DKK 4,415 million as against a revenue of DKK 4,982 million reported for the same period of the previous year; a fall of 11%. This also marks a 13% decrease in terms of local currency (Q3 2018 recorded a 3% decrease in local currency y-o-y). Gross profit was down to DKK 2,747 million in Q3 2019, from DKK 3,602 reported for the same period of the previous year. The Company’s operating profit was at minus (-) DKK  198 million; as compared to an operating profit of DKK 1,196 million for Q3 2018; while its net profit stood at minus (-) DKK 119 million for Q3 2019, it was DKK 951 million for the same period of the previous year.

However, Pandora is now focussed on the path ahead and says its Programme NOW is on track; and that it has taken “the first steps towards enhanced brand relevance, becoming more cost-efficient and creating a strengthened business platform through the Commercial Reset”.

The Company went on to say: “The underlying traffic trend supports the expectations of an improving performance during Q4 and a strong Christmas trading. Total like-for-like sales out growth (like-for-like) improved in most markets following the brand relaunch ending at -7% in October. Disappointing results in China impacted October like-for-like negatively by 2pp”.

According to Pandora, Q3 2019 was marked by “the clean-up phase” and that it had   deliberately reduced its promotional efforts. “Like-for-like was -10% (adjusted for -1.0pp impact from Hong Kong SAR turmoil) with a record high gross margin of 78.6%,” the Company noted.   

Pandora’s brand relaunch programme was initiated on August 29, 2019, and is considered “the first important milestone in the journey to strengthen Pandora’s brand relevance among consumers”.

“The early results of the initiatives are encouraging with positive consumer response to the new visual identity, online stores as well as the pilot concept stores,” Padora stated.

Alexander Lacik, President and CEO of Pandora, commented: “Q3 was an important milestone for Pandora. Our brand initiatives that started in late August receive good feedback from consumers, and the early positive indications are supporting our expectations for solid Christmas trading. We continue to believe that we will see an improvement in like-for-like in Q4 although the exact magnitude is clearly subject to uncertainty. Q3 financial results were marked by our deliberate Commercial Reset, and we will continue to make any necessary decisions that support the long-term health of Pandora.”