Jewellery maker Pandora sees lower profit margin from 2018, appoints new CFO

Shares in jewellery maker Pandora plunged 10 percent on Thursday after the Danish company said its profit margins and sales growth would slow in the next few years and 2017 revenues lagged its own guidance and analysts’ expectations.

Pandora said its EBITDA margin in the period from 2018-2022 would be around 35 percent, compared to the 37.3 percent achieved last year, while it expects revenue to increase annually by 7-10 percent in local currencies.

It reported a 15 percent rise in annual sales for 2017 in local currencies to 22.8 billion Danish crowns ($3.7 billion), below analysts expectations for 22.9 billion and its own outlook for sales of between 23 billion and 24 billion crowns.

Pandora said there had been an 800 million crown foreign exchange loss on revenues.

“They end 2017 weaker than expected and the (2018-2022) outlook for EBITDA margin is on the weak side,” said Sydbank analyst Soeren Loentoft, although he maintained a ‘buy’ rating on the stock.

Pandora shares were down 10.3 percent by 0824 GMT.

“The 2017 results are close to the targets we set ourselves at the beginning of the year, but we are of course disappointed to not fully reach the targets,” Chief Executive Anders Colding Friis said, pointing to a difficult U.S. retail climate and unfavourable currency developments.

Executive changes

The company also announced that CFO Peter Vekslund had resigned after four years in the position, and will be succeeded by Anders Boyer, a member of Pandora's Board of Directors, no later than August 1 2018. 

Vekslund said of his resignation, “Together with my family, I have decided that it is time to start a new chapter in my professional life.”
Peder Tuborgh, Chairman of the Board of Directors added: “ I wish Peter all the best in his future endeavours. I am also very pleased to welcome Anders Boyer to the Executive Management of PANDORA. Anders Boyer is an excellent choice as he, in addition to his deep insight into PANDORA, has a proven track record in driving a global growth and profitability agenda as well as vast experience as CFO in a listed company.”

Prior to joining Pandora, Boyer served as CFO at GN Store Nord, an audio solutions and hearing instruments manufacturer, and has been the CFO of coatings manufacturer Hempel A/S since 2016.

Also departing the company is president of the Americas, Scott Burger, who will step down in February after 10 years with Pandora. Anders Colding Friis will act as interim president until Burger's successor is found.


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