Pandora Chief Financial Officer: The Largest Market In The First Quarter -- The Number Of Passengers Arriving In Stores In The United States Has Decreased By 9%.

The difficult retail market in two of the two key markets in Britain and the US dragged the Danish jeweller Pandora A/S (CPH:PNDORA) A/S (CPH:PNDORA) to record single digit income growth in the first quarter, although it was in line with the group and market expectations, but the management's pretest on the short term recovery in the US market led the group's share price to fall by up to 6.9% after 2.2%.

According to the world clothing shoes and hats net, Pandora A/S

The chief financial officer, Peter Vekslund, revealed at the analyst conference after the earnings report that the largest market in the first quarter, the passenger traffic in the United States dropped by 9%, while the same store sales in its own concept stores also declined by 3%. The decline in the shopping mall "hit all retailers doing business in the US", Peter Vekslund pointed out.

The fixed exchange rate showed a 10% decline in US sales, while excluding the planned closed shop plan, which ended about 400 sales points in the fourth quarter, sales could only be basically flat in the same period last year, up 15% from the four quarter.

The income of the Americas decreased by 4.6% to 1 billion 693 million Danish kronor, and the fixed exchange rate dropped by 9%.

In the same downturn, the fixed exchange rate increased by only 2%, and Germany dropped 6% because of the reorganization of the sales network. The growth rate of EMEA plunged from 30% in the four quarter to 9%. The group emphasized that France and Italy still had double-digit growth in southern Europe.

Now the group can only rely on the Asia Pacific market backed by China's middle class consumers.

China is the only growth rate in the market mentioned by the group in the earnings report. The growth rate in the first quarter increased from 100% in the four quarter to 125%. In addition to the "strong" sales in the local stores, 59 new stores in the past year have also increased growth.

In the first quarter of the Asia Pacific region, 1 billion 268 million dkrona's revenue has accounted for 24.6% of the group's total, further higher than the 20% of the four quarter, while revenue also increased by 44.1% over the same period last year, and the fixed exchange rate increased by 40%.

In the first quarter, Pandora A/S Pandora earned a total of 5 billion 159 million Danish kronor, which was 5 billion 86 million better than the Danish kronor, but increased by 8.8% annually. The fixed exchange rate increased by 8%, the first time since the two quarter of 2012, it has dropped to single digits, which is also far lower than the group's expectation of 13%-18% growth for the whole year.

Lars Topholm, an analyst at Carnegie Investment Bank, a Swedish investment bank, has passed a survey in mid April to reflect that the group is unable to achieve revenue growth from dealers. Accordingly, the target price of Pandora A/S (CPH:PNDORA) has been sharply reduced from 1200 dkrona to 850 dkrona, and the recommended rating has also been lowered from "buy" to "hold".

Lars Topholm believes that the slowdown of the group may be exacerbated by the expansion of its network and e-commerce.

In fact, today's earnings report showed that the same store sales growth in the first quarter was faster than that in the four quarter, and the growth rate in the first quarter was 8%, much higher than 3% in the fourth quarter and the highest growth rate in the past 4 quarters.

Meanwhile

The income of the online store has increased by 63%, and its revenue has reached 304 million Danish kronor, which has increased from 6% in the same period last year to 6%. The US market and the online sales function launched in China last year have contributed.

Peter Vekslund, chief financial officer, pointed out that the problem of passenger flow in the US market has been running through the whole year of 2016, and there is no reason to believe that the two quarter will be completely improved.

Soren Lontoft, a Sydbank analyst at Danish bank, believes that the entire financial report is not clear whether the US business is in a temporary recession or will go towards a longer downturn.

In the first quarter, the Group recorded a core profit of EBITDA 18.79 billion Danish kronor, which was higher than the market forecast of 1 billion 779 million DKK, up 6.8% from 1 billion 760 million last year, and the profit margin of EBITDA decreased to 37.1% from 37.1% in the same period last year, mainly due to the decline in the Americas.

Net profit increased by 4.2% to 1 billion 361 million dkrona.

Pandora A/S Pandora continued to maintain the annual revenue of 230-240 billion DKK (US $33-35 billion) and EBITDA profit margin of 38%, while the 2016 fiscal year's revenue growth and EBITDA profit margins were 21.2% and 39.1% respectively.

In view of the gradual slow down same store sales, Nykredit Bank A/S analyst Klaus Kehl said investors had been worried that the group would downgrade its outlook.

At the time of the deadline, Pandora A/S (CPH:PNDORA) dropped 6.3% to 685.5 dkrona in late trading, expanding the cumulative decline in 2017 to 25.8% so far, with a market value of about 77 billion dkrona, or about 11 billion 200 million US dollars, which has been on the same level with Tiffany&Co. (NYSE:TIF) Tiffany.

Pandora (Pandora jewelry) was founded in 1982 by goldsmith Per Enevoldsen and his wife, Winnie the Winnie, in Copenhagen, Denmark in 1982.

Pandora's bracelet was popular in 2000, helping women achieve outstanding results in a crowd, allowing them to express their individuality by designing their jewels.

The bracelet is made of high quality sterling silver and 14k Gold, and can be exchanged and exchanged with more than 700 kinds of gold and silver plutonium. It can be used for suspending plutonium, including a wide variety of precious stones, pearls, enamels and moeno glass products.

Therefore, no matter what the choice is, it is a simple heart shape.

The acronym, the teddy bear or other symbols can always get a distinctive collocation effect and tell the story of self.

This concept provides an excellent opportunity for consumers around the world to integrate jewelry into personal stories, and this innovative way to reveal important and memorable moments in life.

This concept has created the brilliant success of Pandora interchangeable plutonium bracelet.

Today, it has become the basic criterion of Pandora and has been applied to other matching jewelry series of the company, such as rings, earrings, necklaces and pendants.

Each product is hand-made to maintain Pandora's high quality standards.

With the strong momentum of development in recent years, it has become the third largest jewelry seller in the world, and is also the world's largest manufacturer of gold and silver jewelry.

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