Mass-market jewellery maker Pandora reported revenue of DKK4.8 billion ($720 million) for the first quarter of 2019. This reflects a 10 percent drop in like-for-like growth impelled by lower traffic in physical stores and a 12 percent drop in organic growth that reflects a decrease in wholesaler inventories partly driven by reduced sell-in packages.
Pandora said that its pre-tax margin, excluding restructuring costs, was 22.5 percent.
The company also said that as part of its turnaround initiative, called Programme NOW, 1,200 employees would be let go from its Thailand operations, while 50 low-margin stores would be closed on lease expiry. The staff reductions come on top of the 397 personnel let go in August last year after falling sales. The turnaround program was launched in February this year.
Pandora said that guidance for 2019 remained unchanged. It added that it has 1,364 own-and-operate concept stores of which less than 20 were not profitable in 2018. Most stores are margin accretive and those with diluted margins were on a ‘watchlist’.