Notably, revenue from the US – its largest market – fell 18 per cent from 1 July to 30 September. The negative trend continued in Australia, with a drop of 22 per cent.
Overall, revenue was down 6 per cent from the previous report, published in August: from DDK4.7 billion ($AU1 billion) to DKK4.4 billion ($AU950 million).
Restructuring costs, reduced sales promotions and an increased marketing budget lead to losses of DKK198 million ($AU42.6 million).
As part of its ‘re-launch’ strategy, Pandora undertook store renovations and redesigned its e-commerce website, announced promotional deals with celebrities and social media influencers – including Stranger Things actress Millie Bobby Brown – and held consumer and media events to generate publicity.
Following the latest report, the Pandora share price fell 17.6 per cent, from DKK339.70 to DKK280.
Despite the disappointing results, Alexander Lacik, CEO Pandora, called Q3 an “important milestone for Pandora”.
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“Our brand initiatives that started in late August received good feedback from consumers, and the early positive indications are supporting our expectations for solid Christmas trading,” he said.
Lacik also noted that the company’s restructuring program – which has involved share buybacks, streamlining the product offering, and closing retail accounts – had a significant impact, but would likely strengthen Pandora Jewellery’s financial position in the long-term.
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