Pandora: shares drop as full-year forecasts cut
(CercleFinance.com) - Pandora shares are down 4% on Tuesday after the jewelry maker said growth would be worse than expected this year, prompting the company to launch a cost-cutting plan.
Pandora, which is still looking for a CEO, said group revenue decreased 3% in local currency in the third quarter, with EBITDA falling to 1.5 million Danish kronor from 2 billion Danish kronor.
The Danish company said that full-year revenue growth is now expected to be 2%-4% in local currency, while the long-term revenue growth target of 7%-10% has been cancelled outright.
"The third quarter results were unsatisfactory and we adjust our full year guidance," said CFO Anders Boyer in a statement.
Pandora has decided to launch a program aiming to materially reduce costs across the company, meaning that it will acquire a lot less franchisees. The company will also open less new stores.
The stock is currently down 4.2% at 374 Danish kronor on the Nasdaq Nordic market.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Pandora, which is still looking for a CEO, said group revenue decreased 3% in local currency in the third quarter, with EBITDA falling to 1.5 million Danish kronor from 2 billion Danish kronor.
The Danish company said that full-year revenue growth is now expected to be 2%-4% in local currency, while the long-term revenue growth target of 7%-10% has been cancelled outright.
"The third quarter results were unsatisfactory and we adjust our full year guidance," said CFO Anders Boyer in a statement.
Pandora has decided to launch a program aiming to materially reduce costs across the company, meaning that it will acquire a lot less franchisees. The company will also open less new stores.
The stock is currently down 4.2% at 374 Danish kronor on the Nasdaq Nordic market.
Copyright (c) 2018 CercleFinance.com. All rights reserved.