Pandora Says January Sales Down 3% On Organic Basis

PARIS — Pandora’s sales were down 3 percent on an organic basis in January, while sell-out was down 8 percent, the Copenhagen-based jeweler said Monday, updating the markets on current trading conditions.

The company said the larger drop of sellout was linked to franchise partners stocking up ahead of Valentine’s Day. Pandora repeated its full-year target of organic growth above 8 percent this year and an earnings before interest and tax margin of more than 21 percent. Around 30 percent of the brand’s stores were temporarily closed in January.

Pandora released fourth-quarter results last week, which showed sales grew 4 percent on an organic basis, the first time they were back in positive territory in three years. But the company signaled a clouded business outlook this year.

The jeweler said to expect “elevated uncertainty” for the coming months, given the ongoing coronavirus crisis. Still, it is projecting a return to sales growth in 2021, excluding the effect of the crisis.

Before the coronavirus hit last year, Pandora was undergoing a wide-reaching overhaul to boost the popularity of its charms and necklaces — geared at adjusting to declining foot traffic in malls, where many of its stores are located.

The jeweler has been hit hard by temporary store closures induced by the pandemic, but gained back some business at the end of last year, opening dozens of pop-up stores in North America, for example. It has also bulked up marketing efforts, streamlined its product assortments and emphasized digital channels.

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