Pandora Q1 European Sales Drop 36.2%

Image: Pandora

(IDEX Online News) – Revenue at bead behemoth Pandora dropped 18.4 percent in the first quarter of 2012 to DKK 1,424 million ($248 million) compared to DKK 1,745 million ($304.3 million) in the first quarter of 2011.

Geographically, the hardest-hit area was Europe, where sales decreased by 36.2 percent (35.9 percent decrease in local currency).

Sales in Asia Pacific decreased by 16.4 percent (22.3 percent decrease in local currency)

The Americas fared much better, experiencing a sales decrease of just 2 percent (5.5 percent decrease in local currency).

Net profit decreased by 34.4 percent to DKK 338 million ($58.9 million) in the first quarter, compared to a net profit of DKK 515 million ($89.8 million) in the prior year quarter.

In its outlook, the company said it expects revenue growth in the mid-single digits in 2012.

Pandora plans to open approximately 200 new concept stores in 2012, with a particular focus in new markets. It anticipates opening at least 135 new concept stores and shop-in-shops in its key new markets of Italy, France, Russia and Asia during the course of the year.

"During the first couple of months I have been spending time with all of our major markets and also visited our production facilities in Thailand,” said CEO Björn Gulden. “I have worked through our strategic review, and can confirm that I 100 percent agree to its conclusions. Our strategy is intact – it is all about execution.

Gulden said while the company was facing some short-term challenges, it had initiated actions to deal with them all. “The most important fact is that we work together with our retailers, to make sure that the quality of their stock is improving. The fact that we have realigned the price architecture and product range and also reduced prices on several of our products is also assuring that we will have a larger offering in the commercial Pandora price points going forward.”