Shares of Danish jeweller Pandora saw a significant surge of 11.4% on Monday following the company’s announcement that its sales and profits for the 2019 fiscal year are projected to meet forecasts. In a statement, Pandora disclosed that like-for-like sales experienced a decrease of only 4% in the fourth quarter, indicating signs of improvement compared to the steep decline observed in the first half of the year, where sales fell by 10%. This positive trend suggests that the brand’s relaunch is progressing as planned, with an expected 8% decline in like-for-like sales by the end of the year, aligning with its forecast.

Looking at the full year, it is anticipated that the organic decline will slightly surpass expectations at 8%, following a 4% drop in the fourth quarter. Furthermore, the full-year EBIT margin, excluding restructuring costs, is projected to be within the upper range of the previously guided 26-27%. The improvement in like-for-like sales is credited to the effectiveness of Programme NOW, a strategic initiative aimed at rejuvenating the brand and driving sustainable growth, according to Pandora.

To regain market share and appeal to younger consumers, Pandora recently introduced a fresh identity, philosophy, and direction in addition to a revamped aesthetic. The company hosted a prominent relaunch event in Los Angeles in August and organized pop-up activations in London to introduce the new concept. Furthermore, Pandora collaborated with actress Millie Bobby Brown, further solidifying its efforts to remain relevant in an increasingly competitive online market.

However, despite these positive developments, Pandora anticipates that like-for-like growth will remain negative in 2020, and the 2020 EBIT margin, excluding restructuring costs, will be lower than that of 2019. The company is set to release its full results for the 2019 fiscal year on February 4th.

Please find below two useful links for further information:
1. Pandora Official Website
2. Reuters: Pandora Sees 2019 Profit Margin at Upper End of Target, Eyes New Store Format