Pandora reports like-for-like improvements following relaunch

Danish jewellery brand Pandora has reported “solid” like-for-like improvements in Q4 following its brand relaunch, which introduced a new logo, signature colour, design collaborations and new store concepts.

In Q4 2019, Italy, France and Germany delivered positive like-for-like, while growth momentum in the US and the UK also improved, added Pandora in a statement.

The fact that three of its seven largest markets delivered positive like-for-like in Q4 it said was “an important step forward” and demonstrates that the turnaround plan is helping the jewellery brand to return to sustainable growth.

Overall, like-for-like was down 4 percent in Q4, and down 8 percent for the FY 2019 results.

The Programme Now turnaround plan will continue in 2020, added Pandora, with the continued opening of new stores, as well as step-change investments in the online channel while considering the use of additional online market-places.

In 2020, Pandora expects the growth performance to improve from -8 percent like-for-like in 2019 to negative “mid-single-digit” like-for-like in 2020, with the organic growth expected to be “-3 to -6 percent”. The EBIT margin excluding restructuring costs is expected to be “above 23 percent”.

The jewellery company does add that it is expecting a “weak underlying performance” in China but an underlying performance improvement in the majority of the other markets, however, it does note that the financial guidance does not include any impact from the coronavirus.

Alexander Lacik, president and chief executive of Pandora, said: “With 2019 behind us, we have completed the first year of our 2-year turnaround. We have made significant changes in a very short time, and the results in Q4 give us confidence.

“Consumers are responding positively to our commercial initiatives. Like-for-like is improving, and we have built a healthier foundation for the business. In 2020, we will continue to invest significantly to drive the topline, strengthen our organisational capabilities and pursue further cost reductions to fund our growth initiatives. Our priority remains to do what is right for the company in the long-term.”

Image: courtesy of Pandora