Feb 9, 2016
Danish jeweller Pandora sees slower revenue growth in 2016
Feb 9, 2016
Pandora forecast slower revenue growth in 2016, sending shares in the Danish jewellery maker and retailer lower on Tuesday.
It forecast 2016 revenue at 19 billion Danish crowns ($2.85 billion), an advance of about 14 percent after a gain of more than 40 percent to 16.7 billion last year.
The company, which manufacturers in Thailand, is also slowing the expansion of its retail network. It confirmed plans unveiled last month to open more than 250 stores this year, down from the 392 it added in 2015.
Pandora's shares were trading down 4.4 percent at 788 crowns at 1109 GMT to lag a Copenhagen benchmark index down 1.2 percent.
Shares fell despite the company announcing a share buyback plan worth up to 4 billion crowns and proposing a 2015 final dividend of 13 crowns, higher than the 12.3 crowns expected by analysts polled by Reuters.
The company, which competes with companies such as Signet Jewelers and to some extent with Tiffany & Co, said around 70 percent of its 2015 revenue came from its roughly 1,800 concept stores.
It plans to open around 60 percent of its new stores in Europe, 20 percent in the Americas and 20 percent in the Asia-Pacific region, Pandora said in a statement.
"This is a shift of strategy towards companies like Hennes & Mauritz and Zara, more than being pure distribution. This is what ensures a high top line growth in the coming years," said Alm. Brand Markets analyst Michael Friis Jorgensen.
Pandora's fourth-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) came to 2.14 billion crowns, in line with the 2.16 billion forecast by analysts polled by Reuters.
$1 = 6.6780 Danish crowns
© Thomson Reuters 2023 All rights reserved.