Jeweler Pandora’s Q3 earnings miss analysts’ estimates

Bloomberg

Wed, Nov 11, 2015 - Page 15

Pandora A/S reported third-quarter earnings that missed estimates as the Danish jeweler’s US sales growth weakened due to a change in promotional strategy.

Net income rose 39 percent to 1.01 billion Danish kroner (US$145.42 million), Pandora said in a statement yesterday.

The average of eight analysts’ estimates compiled by Bloomberg was 1.06 billion kroner.

Earnings before interest, tax, depreciation and amortization was in line with estimates, while sales growth of 37 percent beat analysts’ expectations.

“Growth in the US was slightly softer than previous quarters primarily due to a change in promotion strategy in the region to further enhance our brand,” CEO Anders Colding Friis said in the statement.

While the global market for personal luxury goods is heading for its weakest year since 2009, Bain & Co expects jewelry to be this year’s best-performing category, rising 6 percent.

Pandora’s sales in the Americas rose by 8.3 percent in the third quarter, excluding currency shifts, compared with 19 percent growth in the second quarter.

Full-year revenue is expected to exceed 16 billion kroner, the Glostrup-based company said. Pandora anticipates adding more than 375 branded stores this year.

Shares in the firm have risen 58 percent this year, bringing the company’s market value to 97.2 billion kroner.