Recovery Being Hit by COVID-19 Surges, says Pandora
August 18, 20
(IDEX Online) - Pandora posted a second-quarter loss of $27.9m and warned that recent surges in COVID-19 infections would continue to stall its recovery.
By contrast, the Danish jewelry retail giant, best known for its charm bracelets, made a Q2 profit of $84.3m in 2019.
The pandemic forced the closure of 90 per cent of its 7,300 outlets and in Q1 of 2020 saw the company report a $3.5m loss. Revenue fell 39 per cent to $459.2m.
But there was some cause for optimism as like-for-like sales — excluding closed stores — actually increased, by eight per cent.
In February, Pandora forecast a drop in full-year sales of three to six per cent. It has now revised that figure to between 14 per cent and 16 per cent, assuming the pandemic gets no worse.
Alexander Lacik, president and CEO of Pandora, said: "COVID-19 has changed our societies and challenged global brands around the world. The pandemic may leave a lasting effect on consumer behaviour, our ways of working and use of technology.
"Pandora's business model has proven its resilience during the crisis, and our consumers have continued to engage actively with the brand despite closed stores."