Brand’s performance is “far from satisfactory” says chief executive.
Danish bead brand Pandora has released its interim results for Q3 with figures that show its net profit has declined 41.3% to £39 million as it continues to struggle in Europe.
The beleaguered brand has faced a challenging few months during which it has launched new bracelet and necklace concepts, while working closely with consumer media in the UK to increase and maintain brand awareness.
Pandora’s overall group revenue fell 12.3% to £182.4 million in Q3, compared to £207.8 million in Q3 of 2010.
In Europe, the brand’s group revenue declined 28.6%, however it enjoyed as revenue increase of 4.1% in the Americas.
The brand’s gross margin increased to 73.6% – a 0.4% increase on 2010 while its EBITDA (earnings before interest, taxes, depreciation, and amortization) decreased by 33.6% to £207 million.
Pandora is set to focus heavily on Christmas and expects to meet its full-year predictions with revenue in line with 2010. The brand has said it expects capital expenditure to amount to approximately £26.7 million and the effective tax rate to be approximately 18%.
Marco Bottoli, Pandora’s interim chief executive expressed disappointment at the results.
"Our performance in Q3 2011 has been far from satisfactory. However, we have implemented or are in the process of implementing the corrective actions identified in our commercial, product and marketing areas as well as in our organisation that we communicated to the market on 2 August 2011.”
The brand is in nearing the end of a strategic review that is being carried out with the aid of external consultants.
“We plan to present the final assessment as well as a complete update on the implementation of operational changes and 2012 guidance at the time of 2011 full year earnings release in February 2012,” added Bottoli.