RAPAPORT… Pandora shuttered approximately 30% of its retail network in January amid a new outbreak of coronavirus cases.
Most of the store closures were in Europe, with all its UK shops shut as the country battles a more severe variant of the virus, a spokesperson for the Danish jeweler told Rapaport News Monday. As of December 31, some 10% of global locations were closed.
The company’s sales fell 3% year on year in January on an organic basis. In January 2020, Pandora saw a limited impact from the pandemic, as the outbreak was mainly centered in China at the time, and the company did not begin closing stores until January 22.
January’s performance was in line with the company’s expectations. Pandora still forecasts organic growth above 8% for the full year, as well as an earnings before interest and tax (EBIT) margin of more than 21%, it noted.
Image: A Pandora store in Harrogate, UK. (Pandora)
Virus Resurgence Forces Pandora Store Closures
The Bottom Line
- Pandora closed roughly 30% of its retail locations in January amid a new COVID-19 outbreak, primarily affecting Europe and the UK.
- Sales declined 3% year over year on an organic basis in January, consistent with company expectations.
- Despite closures and sales dip, Pandora projects over 8% organic growth and an EBIT margin above 21% for the full year.
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