Glimmers of hope for Pandora after shares jump as firm meets forecast
Shares in Danish jeweller Pandora leapt 11 per cent today after the firm confirmed that it would meet its 2019 sales and profit guidance.
In a trading update, the company said it expected like-for-like sales to fall four per cent in the fourth quarter and eight per cent for the whole of 2019.
Read more: Jewellery maker Pandora warns of steeper sales decline
Full year earnings, excluding costs related to ongoing restructuring, are set to be at the top end of the 26 to 27 per cent forecast the firm had previously indicated.
Organic sales for the fourth quarter are down one per cent, and fell eight per cent across the whole year.
The company said: “The sequential improvement in like-for-like confirms the strategic direction and the effectiveness of ‘Programme Now’ to bring Pandora back to sustainable growth with industry-leading margins.”
Read more: Cost cutting overhaul lifts jewellery maker Pandora’s shares
It added that like-for-like sales are expected to be negative in 2020, as previously communicated, with the firm’s earnings margin also set to be lower than in 2019.
The update will be welcome news for Pandora’s investors, as the firm has been under strain over the past couple of years due to a slowdown in shopping centre sales and a lack of appetite for its new jewellery lines.