March 23rd, 2020
Danish Jeweller Pandora has announced that “the material negative impact on the global economy” following the escalation of the coronavirus has rendered its previously published financial guidance “no longer meaningful”. Pandora’s financial guidance announced on February 4 “excluded any impact from COVID-19”, the jeweller said and is therefore withdrawn.
Pandora said that although its financial performance was strong in January and February, the “COVID-19 escalation has led to a material weakness in sales across markets”. Its sales in China dropped by 70%-80% since late January and the European markets, especially Italy, “have been visibly impacted since late February”. Trading in Australia has likewise suffered. “The timing and pattern of the return to normalised business are obviously subject to uncertainty and outside the control of Pandora”, the jeweller added.
Pandora said that it “ is actively managing cost levels, including media, rent and other store costs” and expects profitability to continue to be strong in Q1 2020. The jeweller explained that “the profitable and cash generative business model means that Pandora can absorb several months of suppressed traffic and still be profitable and cash generative for the full year”.