RAPAPORT… Pandora expects sales to weaken in December amid lower foot traffic due to Covid-19 restrictions and an earlier start to the holiday shopping period.
The Danish jeweler began its festive shopping season earlier in November to manage social-distancing guidelines and the increase in online purchasing, it said Monday.
“December trading is expected to be negatively impacted by these efforts,” Pandora noted.
The company is also concerned about future store closures, as it relies heavily on the European market, where governments recently announced widespread restrictions on gatherings. About 10% of Pandora’s physical locations were temporarily closed at the end of November when areas went back into lockdown amid a resurgence of the virus.
However, the early start to the festive season paid off in November, as strong online growth more than offset lower sales in brick-and-mortar stores, Pandora said.
The company has maintained its forecast that sales for the full year are expected to fall 17% on an organic basis.
Image: A Santa Claus charm. (Pandora)
Pandora Warns of December Sales Slowdown
The Bottom Line
- Pandora began its holiday shopping season early in November to manage social distancing and increased online sales.
- The company expects December sales to decline due to lower foot traffic and potential future store closures in Europe.
- Despite challenges, strong online growth in November offset reduced in-store sales, but full-year sales are still forecasted to drop 17% organically.
More Stories
Namibia Authorities Investigate Allegations About Corruption in Diamond Sector
Brilliant Star denies activist’s allegations about it; De Beers terminates company’s sight following separate review.
Shai Schnitzer Becomes Third Generation of Family to Head IDE
His grandfather, Moshe Schnitzer, and father, Shmuel Shnitzer, both served as president.
Romanov Sapphire Sails Past Estimate to Score $5M at Sotheby’s
Auction house originally predicted Cartier bracelet would bring in up to $2 million.
