http://www.ft.com/cms/s/0/b02bcc9e-bd0f-11e0-bdb1-00144feabdc0.html#axzz1TqowDXMe
Pandora, cut its 2011 revenue growth forecast from at least 30 per cent to zero, having only upgraded its forecast from 25 per cent on April 18 this year and reiterated this guidance on May 19. It also cut its forecasts for its outlook on earnings and profit margins.
Pandora also cited myriad other contributing factors including hefty increases in gold and silver wholesale prices, increasingly price-sensitive customers, excessive production and gorged inventory lists.
Pandora said year-on-year revenue growth slowed to only 3.6 per cent in the second quarter, down from 41 per cent in the first quarter and 67 per cent in the preceding quarter. Its earnings before interest, tax, depreciation and amortisation fell by 6.2 per cent to DKr512m in the second quarter.
Shares in Pandora, which had briefly climbed above DKr370 earlier this year, closed at DKr51. Of the 14 stock market analysts (LEMMINGS - IDIOTS AND FOOLS) who covered the company, 11 had a “buy” rating on the stock until Tuesday while three had a “hold” recommendation.
Analysts in Copenhagen questioned Pandora’s ability to return to solid growth as the brand is highly fashion-driven.
“The banks seem to have promoted it as the next Tiffany’s but there’s no comparison,” said Lau Svenssen, an analyst at Aktieinfo, an independent Danish analysis company.
Pandora, cut its 2011 revenue growth forecast from at least 30 per cent to zero, having only upgraded its forecast from 25 per cent on April 18 this year and reiterated this guidance on May 19. It also cut its forecasts for its outlook on earnings and profit margins.
Pandora also cited myriad other contributing factors including hefty increases in gold and silver wholesale prices, increasingly price-sensitive customers, excessive production and gorged inventory lists.
Pandora said year-on-year revenue growth slowed to only 3.6 per cent in the second quarter, down from 41 per cent in the first quarter and 67 per cent in the preceding quarter. Its earnings before interest, tax, depreciation and amortisation fell by 6.2 per cent to DKr512m in the second quarter.
Shares in Pandora, which had briefly climbed above DKr370 earlier this year, closed at DKr51. Of the 14 stock market analysts (LEMMINGS - IDIOTS AND FOOLS) who covered the company, 11 had a “buy” rating on the stock until Tuesday while three had a “hold” recommendation.
Analysts in Copenhagen questioned Pandora’s ability to return to solid growth as the brand is highly fashion-driven.
“The banks seem to have promoted it as the next Tiffany’s but there’s no comparison,” said Lau Svenssen, an analyst at Aktieinfo, an independent Danish analysis company.
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