Restructuring Efforts Boost Pandora

RAPAPORT... Shares in Pandora rose 10% in early trading Tuesday as salesdeclines narrowed in key markets and restructuring efforts led to signs ofrecovery. Global sales fell 2.6% year on year to DKK 4.69 billion($697.2 million) in the second quarter, the Danish charm maker reportedTuesday. Same-store sales - at locations open for more than a year - fell 6% in the US, while sales in China slipped 4%. Sales dropped 10% in Italy and slid 8% in the UK, two important markets that saw sharper declines in the previous quarter. In the three months ending June 30, Pandora savedapproximately DKK 125 million ($18.6 million) through cost-cuttinginitiatives, which included decreasing its workforce by a net 2,200 employees,as well as reducing the number of days on which it offered promotional sales by 32%, itsaid. As part of the revamp, the company also plans to adopt pink as its new main coloracross all points of contact with customers. It will also introduce severalnew jewelry collections targeted primarily at young women, and will offer charms based on characters and items from HarryPotter and Frozen II. Additionally, the jeweler will cooperate withsix global influencers who have significant reach on social media, includingNathalie Emmanuel, an English actress and Instagram influencer with more than5.5 million followers. "In the quarter, we have progressed rapidly on a number ofimportant commercial initiatives which we can soon reveal and showcase to ourconsumers as part of our brand relaunch on August 29," said Pandora CEOAlexander Lacik. "Our preparations and marketing pilots spur confidence in ourdirection. By improving execution with focus on Pandora's core proposition, we can improveour relevance for consumers around the world. This is the first important stepin our journey towards positive growth." Global net profit for the quarter fell 50% to DKK 526million ($78.1 million). The company is on track to reach its guidance of a sales decline ranging from 3% to 7% for the full year, it said. Image: A Pandora heart charm. (Pandora)