Last week, the Eastern High Court in Copenhagen acquitted the Danish jewellery company on all accounts in relation to a potential breach of the Securities Trading Act.
The recent verdict concerned an indictment filed against Pandora by the Danish Public Prosecution for Serious Economic Crimes in November 2013.
In December 2014, the District Court of Glostrup ordered Pandora to pay DKK2 million (AU$410,902) after ruling that the company had failed to inform the market in a timely manner that it had downgraded its 2011 profit targets.
Pandora had originally expected a sales rise of at least 30 per cent and an earnings before interest, taxes, depreciation and amortisation (EBITDA) margin of at least 40 per cent, but on 2 August 2011, it revised its expectations to a zero increase and an EBITDA margin of 31 per cent to 34 per cent.
The profit warning was issued more than two weeks after the 18 July 2011 deadline for announcing any downward adjustments to revenue and only a fortnight before the release of Pandora’s 2011 second quarter financial results.
After the District Court of Glostrup’s judgement, Pandora appealed the verdict, with the Eastern High Court eventually ruling in the jewellery company’s favour.
Pandora indicated that the case would have no impact on its 2016 outlook.
Pandora, which is based in Copenhagen, Denmark, was founded in 1982. The company’s jewellery is sold in more than 100 countries through approximately 9,300 points of sale. Globally, the company has more than 1,800 concept stores, including more than 100 across Australia and New Zealand.
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