Bereft of a chief executive and wounded by tough trading conditions, Danish jeweller Pandora painted a bleak picture this morning after slashing its sales outlook for the second quarter running.
Missing its profit and sales expectations in the third quarter of 2018, the jewellery maker today revised down its full-year revenue growth guidance for the second time since August.
Pandora reported a 26 per cent drop in earnings before, interest, tax, depreciation and amortisation and a three per cent decline in third-quarter revenues and a three per cent fall in revenue.
Today the firm said it expects 2018 sales in local currencies to rise by between two and four per cent, marking a drop from previous guidance of four to seven per cent.
The results come as the Danish firm embarks on a cost-cutting strategy aimed at regaining investor confidence and reversing the downward direction of like-for-like sales.
It is the latest sign of Pandora’s international demise, which has emerged over the last 12 months on the back of a slowdown in shopping mall sales and lack of take-up for the firm’s newest products.
Shares in Pandora plunged five per cent in early trading this morning, adding to a 40 per cent drop since the start of the year.
In August the firm ousted its chief executive Anders Friis, who left the firm following a dramatic profit warning.
Chief financial officer Andres Bowyer said: "We have reviewed our business and decided to launch a forceful programme with the aim to materially reduce costs across the company to free up resources to invest in sustainable like-for-like growth."