Pandora reduced its benefit by half during Q2 in the middle of restructuration

Pandora continues the low. The Danish jewelry group reduced by half its net benefit in first half of the year. The group closed its second quarter with net benefit of 327.5 million dollars (295,3 million euros), compared to the 750.2 million dollars (437.4 million euros) in the same period last year.

The company shrunk its sales between January and June 6%, up to 1.3 billion dollars (1.2 billion euros). Its ebitda arrived at 411.1 million dollars (370.7 million euros), compared to the 485.1 million dollars (437.4 million euros) the same period last year.

By distribution channels, Pandora dropped in multibrand, with a descent of 23%, up to 425.5 million dollars (383.7 million euros). However, in the monobrand the group increased 2% its sales, up to 919.3 million dollars (828.8 million euros). By comparable surface, the revenue of the group shrunk in both channels, with droppings for 8% in monobrand and 13% in multibrand.

Pandora dropped in multibrand, with a descent of 23% during its first half

Online sales was the one with the best performance, with an increase of 13%, up to 151.6 million dollars (136.7 million euros). Ecommerce of the group already represents 11.6% of its income.

By regions, only China increased its revenue, up to 12%, arriving at 156.8 million dollars (141.4 million euros). This increase positions the giant as the second biggest market for the group after United States.

In the rest of the regions, Pandora dropped its revenue, with downfalls on a double digit. Biggest descents where in Australia, with a drop of 21% and in France with a drop of 17%.  

China was the only one of Pandora’s markets that grew, with a rise of 12%  

Pandora explains that the weak performance of the brand its because of the impact of the company’s restructuration plan, that the company started during its second quarter under the motto Programme Now.

The plan is bases in three pillars: reinforce the brand presence, to strengthen omnichannel strategy, to reduce costs and to rearrange its commercial network. Amongst the most drastic measures are the cost reduction of 89.1 million dollars (80.4 million euros) in 2019 and 178.3 million dollars (160.8 million euros) in 2020.  

On the other hand, the company is also evaluating the profitability of its store network with the goal of reducing its size. Pandora counted with 2,731 stores the 30^th of June, with registrations of 138 openings compared to its previous fiscal year. In the last year, the company has opened 244 establishments and closed 84.