Pandora CEO Resigns as Sales Disappoint

RAPAPORT... Pandora CEO Anders Colding Friis has stepped down aftersecond-quarter sales missed the jeweler's expectations and forced it to cut itsoutlook for the year. Global sales were flat year on year at $749 million (DKK 4.82billion) for the April-to-June period, the Danish charm-maker reportedThursday. Revenue in the US fell 12% in local currency, while sales in thewider Americas region decreased 6%. Pandora noted weak demand for its charms, as well as a softperformance in the wholesale division due to reduced inventory. "New rings, earrings, neckwear and bracelets deliveredgrowth as expected, but the new charms are not fueling the reignition of charmsrevenues as anticipated," the company said. Asia-Pacific revenue performed better, climbing 11% in localcurrency to $177.5 million (DKK 1.14 billion). That rise was mainly due to China, wheresales increased 29% in yuan as the jeweler opened new stores in the area. Pandora now expects sales growth in the 4%-to-7% range, versus earlier guidance of 7% to 10%, it said earlier this week. In aneffort to increase profitability, Pandora will also lay off nearly 400 workers,primarily from its manufacturing center in Thailand, it added. Global netprofit fell 4.7% to $162.3 million (DKK 1.04 billion) in the quarter. Jeremy Schwartz will join Pandora as its new chief operatingofficer on September 1, and will jointly manage the company alongside chieffinancial officer Anders Boyer until it finds a replacement for Colding Friis (pictured). Pandora expects to open approximately 250 concept storesduring the year, up from the previously planned 200.