Pandora, a renowned jewellery brand, is currently grappling with challenges in the retail market and is set to implement cost-cutting strategies to combat a decline in revenue growth. The company aims to save 1.2 billion crowns while expecting a reduction in organic revenue growth between 3 and 7 percent this year.
The Danish charm-bracelet manufacturer is actively seeking a new CEO amidst a noticeable decrease in foot traffic at malls in key markets. Additionally, newly introduced jewellery collections have not met expectations in attracting customers.
Jeremy Schwartz, the Chief Operating Officer with prior experience as the CEO of Body Shop, remains positive about the company’s overall transformation. He believes that this strategic move will revive Pandora, leading to sustainable growth and maintaining top-tier margins within the industry.
Although Pandora experienced a drop in EBITDA during the previous year’s fourth quarter, they are confident in achieving an EBIT margin of between 26-28 percent for 2019, excluding any restructuring expenses. The company also plans to buy back shares worth 2.2 billion crowns this year while keeping dividends at the same level as in 2018.
With the departure of former CEO Anders Colding Friis, Pandora is currently under the joint leadership of COO Jeremy Schwartz and CFO Anders Boyer. Despite the expected negative impact on sales due to reduced promotional activities, the company is resolute in its commitment to enhancing financial performance through cost-saving initiatives.
For more information on Pandora’s financial outlook and strategic plans, you can visit their official website here. Additionally, to stay updated on the latest developments in the retail industry, you can explore relevant articles on retail trends and challenges at Reuters.
