Pandora Expects Market Weakness to Persist

RAPAPORT… Pandora believes the challenging market will continue through the end of 2020 amid a resurgence in coronavirus cases in key business locations.

“[The second quarter of] 2020 will not be forgotten anytime soon,” said Pandora CEO Alexander Lacik. “Covid-19 has changed our societies and challenged global brands around the world. The pandemic may leave a lasting effect on consumer behavior.”

The Danish jeweler forecasts sales for the full year to decline between 14% and 20%, compared to the 3% to 6% drop it predicted in February. The new figure assumes business will continue at its current rate, with no additional major lockdowns in key markets or further deterioration of the economic situation, it said Monday.

However, recent surges in Covid-19 cases and new local lockdowns in August have caused consumer sentiment to weaken and affected sales during the month, the company noted.

Revenue fell 39% to DKK 2.88 billion ($459.2 million) for the second quarter ending June 30. Like-for-like sales — excluding closed stores — rose 8%, after falling 10% during the same period a year ago. Revenue for the first half of the year slid 26% to DKK 7.05 billion ($1.13 billion).

Image: A Pandora store in Florida. (Kkjwiki)