Pandora CEO Alexander Lacik said today that the second quarter “will not be forgotten anytime soon” as he revealed the company’s sales slumped by almost 40% during arguably the most difficult three-month period in its history.
The jewellery brand saw sell-out growth decline by 39% as many of its physical stores across the world were forced to shut as the coronavirus pandemic took hold.
In fiscal terms, it meant that Q2 revenues crashed from DKK4.7 billion (£560m) last year to DKK2.9 billion (£343m) this time around, a deficit of some £217m.
The situation has improved in Q3 – with sales only 10% short of last year’s numbers for the quarter to date – however recent surges in Covid-19 and new, local lockdowns in August has stalled progress, the company said.
The UK market was the last of Pandora’s “key markets” to re-open with physical stores entirely closed until mid-June.
The UK performed better than the group average, driven by its large online business, which generated triple-digit growth rates in all months throughout the quarter.
Organic growth in the UK was down 11% to DKK409m (£49m) as a result of a 25% reduction in sell-out growth but positively impacted by the sell-out skew towards online revenue.
The traffic into physical stores appear to be recovering but is clearly lagging behind the trend seen in markets that have been open longer, the company added.
Mr Lacik commented: “Q2 2020 will not be forgotten anytime soon. Covid-19 has changed our societies and challenged global brands around the world. The pandemic may leave a lasting effect on consumer behaviour, our ways of working and use of technology.
“Pandora’s business model has proven its resilience during the crisis, and our consumers have continued to engage actively with the brand despite closed stores. I am proud of how our employees have been coping with the challenges while at the same time finding creative ways to identify opportunities in times of change.”