Danish jeweller pandora necklace chains has disappointed shareholders with weaker than expected profits and sales in the second quarter, but maintained its full-year outlook.
The group’s pandora necklaces canada investors have been on a rollercoaster ride this year with the stock falling by a third from January to May, before rebounding by a quarter then taking another 8 per cent tumble on Tuesday. Analysts say there is an unusually high amount of short-sellers betting against the group.
pandora necklace pendants before interest, tax, depreciation and amortisation were DKr1.61bn ($255m) in the second quarter compared with the average analyst forecast of DKr1.74bn. Sales also came in lighter than predicted at DKr4.83bn versus analysts’ expectations of DKr4.9bn, although they increased 12 per cent from a year earlier.
pandora necklace charm endured a torrid start to life as a listed company after a profit warning in 2011 wiped out two-thirds of its value. But it then became something of an investors’ darling with its shares rising 30-fold in the five years to mid-2016.
Its success was built on sales of charm bracelets but it has expanded into other areas of jewellery recently as well as a partnership with Disney. Sales of rings, earrings and necklaces rose 23 per cent in the second quarter, Pandora added.
Nonetheless, pandora necklace price management stuck to its full-year guidance and underlined an improvement in the crucial US market. It is targeting full-year sales of DKr23bn-DKr24bn and an ebitda margin of 38 per cent.