Danish jeweller Pandora’s chief executive steps down after profit warning


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Anders Colding Friis, chief executive officer of Pandora AS, poses for a photograph in his office at the company’s headquarters in Copenhagen, Denmark, on Monday, July 9, 2018. Pandora designs, manufactures, markets, and distributes hand finished and modern jewelry made from primarily sterling silver, gold, and precious and semi-precious stones.

Danish jewelry maker Pandora‘s chief executive, Anders Colding Friis, is stepping down, the firm said on Thursday, just days after warning of lower sales and profit margins this year.

Shares in Pandora, known for its silver charm bracelets, have plunged by more than a fifth since the company lowered its sales and profit margin guidance for this year and announced plans to cut almost 400 jobs on Monday.

Pandora confirmed preliminary second-quarter sales of 4.8 billion crowns and an EBITDA margin of 31.1 percent released on Monday in connection with the profit warning.

Like-for-like sales growth in the second quarter was down 1 percent compared to a 5 percent decrease in the previous quarter.

The quarterly results were below its expectations partly due to a weak development in the charms category, it said in a statement.

It acknowledged that the strategy it launched in January, aimed at rectifying a lack of innovation and weak growth in key markets, was not progressing as fast as expected.

“We still believe in our strategy towards 2022, but we have realized that we have been too optimistic on the speed of the impact from new products,” said Friis, the outgoing chief executive.

Pandora said in January it would target an EBITDA margin of 35 percent in 2018-2022 and expects sales to increase by 7-10 percent per year in the period.

Late on Monday, it slashed its 2018 sales growth outlook to 4-7 percent, and its EBITDA margin outlook for the year to around 32 percent.

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