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COPENHAGEN, Denmark — Pandora A/S reported third-quarter earnings that missed estimates as the Danish jeweler's U.S. sales growth weakened due to a change in promotional strategy.
Net income rose 39 percent to 1.01 billion Danish kroner ($145 million), Pandora said in a statement Tuesday. The average of eight analysts’ estimates compiled by Bloomberg was 1.06 billion kroner. Earnings before interest, tax, depreciation and amortization was in line with estimates while sales growth of 37 percent beat analysts’ expectations.
“Growth in the U.S. was slightly softer than previous quarters primarily due to a change in promotion strategy in the region to further enhance our brand,” Chief Executive Officer Anders Colding Friis said in the statement.
While the global market for personal luxury-goods is heading for its weakest year since 2009, Bain & Co. expects jewelry to be 2015's best-performing category, rising 6 percent. Pandora's sales in the Americas rose 8.3 percent in the third quarter, excluding currency shifts, compared with 19 percent growth in the second quarter.
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Full-year revenue will exceed 16 billion kroner, the Glostrup, Denmark-based company reiterated. Pandora anticipates adding more than 375 Pandora-branded stores this year. The shares have risen 58 percent this year, bringing the company’s market value to 97.2 billion kroner.
By Janice Kew; editors: Matthew Boyle, Thomas Mulier.
