Pandora Shares Drop as Q2 Sales Miss Estimates

COPENHAGEN, Denmark — Pandora shares fell as much as 6.8 percent in Copenhagen trading after the jewellery maker reported sales and profit that missed estimates.

Pandora’s revenue in the second quarter rose to 4.33 billion kroner ($645 million), according to a statement published on Tuesday. That missed the average estimate of 4.54 billion kroner in a Bloomberg survey of nine analysts. Earnings before interest, tax, depreciation and amortisation rose to 1.61 billion kroner in the quarter, falling short of an estimated 1.71 billion kroner.

“The earnings look disappointing,” Sydbank A/S said in a note to clients. “While sales in Europe are in line with expectations, the US as well as Asia-Pacific disappointed.”

Pandora’s shares traded 5.8 percent lower at 816 kroner as of 9:07 a.m. in the Danish capital. The stock has declined 6.4 percent in 2016 compared with a 1.6 percent gain in the Stoxx 600 Personal & Household Goods index.

While the market will focus on sales and profit misses, it is “reassuring” that Pandora kept its main 2016 financial forecasts, Piral Dadhania, an analyst at RBC Capital Markets with an outperform rating on the stock, said in a note.

By Christian Wienberg; editor: Tasneem Hanfi Brögger.