Reuters logo
UPDATE 1-Jewellery maker Pandora's shares fall on sluggish US and UK sales
May 9, 2017 / 8:38 AM / in 6 months

UPDATE 1-Jewellery maker Pandora's shares fall on sluggish US and UK sales

(Adds CFO, analyst, share price)

May 9 (Reuters) - Pandora reported forecast-beating first-quarter core profit, but growth in its key U.S. and UK markets disappointed, prompting a 6 percent share price fall.

* Q1 revenue 5,159 million Danish Krone ($757.06 million)compared with 5,086 million seen in Reuters poll (Q1 2016 4,740 million DKK).

* Q1 EBITDA 1,879 million DKK versus 1,779 million seen in Reuters poll (Q1 2016 1,760 million DKK).

* Asia Pacific markets grew 40 percent in local currencies, driven by 18 percent growth in Australia and more than doubled growth in China, while newer markets such as France and Italy grew 15 and 23 percent, respectively.

* However growth in the United States, Pandora’s biggest market, and the UK were muted due to challenging retail environments, with a decline of 7 percent and growth of just 2 percent, respectively.

* “We saw a decline in the first quarter in the number of people going to the shops in general of 9 percent, and it impacts everyone doing retail business in the U.S.,” CFO Peter Vekslund told Reuters.

* “We have actually seen this through all of 2016 and there is no reason to think that things will completely change when we come to the second quarter,” he said when asked whether he saw the trend continuing.

* Shares in Pandora were down 6 percent at 0833 GMT, having initially jumped 5 percent in early trade.

* “Nothing in the report confirms whether this is a temporary decline in overall retail sales and for Pandora in the U.S. or if it’s a longer decline,” said Sydbank analyst Soren Lontoft.

* “The focus on the U.S. and the UK is what makes the stock fall,” Lontoft added.

* The firm repeated its 2017 outlook for revenue of DKK 23-24 billion and EBITDA margin of approximately 38 percent Source text for Eikon: Further company coverage: ($1 = 6.8145 Danish crowns) (Reporting by Stine Jacobsen and Julie Astrid Thomsen, editing by Louise Heavens)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below