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    Pandora'S Second Quarter Profit Slump Will Cut 1200 Employees.

    2019/9/5 0:53:00 29

    Pandora

    A few days ago, the Danish jewellery brand Pandora released its second quarter earnings report, which showed that Pandora's second quarter sales fell 10% to 4 billion 690 million yuan, and net profit plummeted nearly 50% to 552 million yuan. With the continued decline in profits from last year, Pandora announced that after the release of the first quarter earnings, 1200 Thailand factory staff will be cut down, and the restructuring cost between 2019 and 2020 is expected.

    In August 2018, Pandora issued the first surplus police. After two days of the announcement, Pandora announced that Anders Colding Friis was stepping down from the position of president and chairman. The incumbent CEO Alexander Lacik was in danger of joining the leadership of the company in February 2019. Although the stock price surged in that month due to the addition of Alexander Lacik, the profits of Alexander Lacik in the second quarter of 2019 after the accession to Pandora still plummeted, showing that the streamlined plan announced by Pandora did not play a positive role. In order to fight against the increase in profits, Pandora also decided to cut 1200 employees on the basis of 1900 employees laid off in 2018 after the first quarter earnings announcement.

    Pandora's CEO Alexander Lacik said that the decline in performance was mainly affected by the decrease in the volume of physical shoppers, but stressed that the brand was accelerating innovation. It would reawaken the attention of consumers by repurchasing wholesale inventories, reducing discount measures and a series of creative marketing activities.

    What we need to guard against is that while Pandora is adjusting internally, it needs to deal with more and more intense market competition. Competitors Monaco brand APM Monaco and American brand Tiffany have improved their profits in recent quarters. Luxury brands such as Dior and Hermes are also launching jewelry series to expand their sales category.

    Whether Pandora can grasp the initiative again in the next market competition, we need to continue to observe.

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