Reduced EBITDA Margin and Store Expansion Plans

  • Pandora reduces full-year expectations due to unsatisfactory Q3 performance
  • Revenue from e-store increased by 52% in local currency, wholesale revenue decreased by 27%
  • EBITDA margin down to 29% from 37.8% in Q3 2017
  • Full-year revenue growth now expected to be 2-4%, previously 4-7%
  • Programme Now launched to reduce costs and improve global operations

Pandora has reduced its full-year expectations for 2018 after experiencing a disappointing third quarter. The company’s revenue decreased by 3% in local currency due to the timing of shipments, change of inventory levels in the wholesale channel, and negative total like-for-like growth. Revenue from its e-store increased by 52% in local currency, while revenue from wholesale decreased by 27%. EBITDA was reported at DKK 1,445 million (£169.3m) compared to DKK 1,965 million (£230m) in Q3 2017 with an EBITDA margin of 29% (37.8%). The company has launched ‘Programme Now’ to address these issues, which includes reducing acquisitions of franchisees and opening fewer stores in selected markets. The program aims to reduce costs, improve working capital, and boost sustainable like-for-like growth. CFO Anders Boyer expressed confidence in the company’s future despite the setbacks.

Factuality Level: 7
Factuality Justification: The article provides accurate information about Pandora’s financial performance and its plans to improve its business strategy. It cites specific numbers and quotes from the CFO, but it could provide more context on the company’s overall industry situation and market trends.
Noise Level: 3
Noise Justification: The article provides relevant information about Pandora’s financial performance and its plans to improve its operations through a new program. It does not contain any irrelevant or misleading information, but it could benefit from more analysis of long-term trends or possibilities.
Financial Relevance: Yes
Financial Markets Impacted: Pandora’s stock price and the jewelry industry
Financial Rating Justification: The article discusses Pandora’s financial performance, changes in revenue and EBITDA, and adjustments to their full-year expectations which can impact the company’s stock price and the broader jewelry industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:

Reported publicly: www.retailsector.co.uk