Pandora confident of revamp plans as sales dip

Danish fashion jewellery brand Pandora has said its turnaround plan is on track ahead of a brand relaunch and marketing revamp.

Organic sales dipped 7% in the second quarter, while like-for-like sales fell 10%. Underlying earnings came in at 1.29 billion Danish kroner (£160 million), down 13.8% on the same period last year.

But newly appointed chief executive Alexander Lacik said progress was being made on a number of initiatives to turn around performance.

These included testing a more aggressive marketing approach in both the UK and Italy, doubling spending on the area.

The company said its UK sales were down 8% in the second quarter, though it had benefited from the increased marketing spend in May and June. Total British sales, including new store openings, were up 2%.

Lacik said: “Our preparations and marketing pilots spur confidence in our direction – by improving execution with focus on Pandora’s core proposition, we can improve our relevance for consumers around the world.”

The brand is readying itself for a relaunch at the end of this month, beginning with the unveiling of its autumn collection in Los Angeles on 28 August.

This will be followed by the roll-out of a new store design, as well as new online platforms, partnerships and products. The first rebranded store will open in the UK.

Earlier this week the brand announced it had signed a deal with Warner Bros to created jewellery based on the characters from the Harry Potter franchise. The deal will allow it to sell 12 new products, including charms, pendants and bracelets from 28 November 2019.