Pandora, the Danish jewelry company, saw a remarkable increase of 11.4% in its shares on Monday, reflecting investor confidence in its ability to meet sales expectations for 2019. The company reported that its like-for-like sales declined by only 4% in the fourth quarter, signaling a positive turnaround after a challenging start to the year.
This positive momentum indicates that Pandora is on track to end the year with an 8% decrease in like-for-like sales, in line with its initial forecast. Despite an anticipated organic decline of 8% for the full year, the company is optimistic that its full-year EBIT margin, excluding restructuring costs, will be at the higher end of the projected range of 26-27%.
Pandora attributes the improvement in sales to the success of its strategic plan, Programme NOW, which aims to rejuvenate the brand and drive sustainable growth. The company recently rolled out a new brand identity, philosophy, and direction as part of this initiative.
In a bid to appeal to a younger audience and adopt a more modern aesthetic, Pandora hosted a major relaunch event in Los Angeles and conducted pop-up activities in London to introduce its new direction. Collaborations with popular figures like Millie Bobby Brown have also been part of Pandora’s efforts to broaden its appeal.
These strategic shifts by Pandora are a response to challenges faced in recent years, including stiff competition from online jewelry retailers. While the brand gained popularity in the past for its charm collections, it struggled to keep up with changing trends and evolving consumer preferences.
Looking ahead, Pandora expects continued negative like-for-like growth in 2020, with the EBIT margin for 2020, excluding restructuring costs, projected to be lower than in 2019. The company is set to announce its full-year 2019 results on 4 February, offering further insights into its financial performance and strategic direction.
For more information on Pandora’s recent developments, visit their official website here.
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