On August 20th Pandora issued a press release regarding Q2 earnings. The share price subsequently surged; especially following purchases by the CEO and CFO. It seems the absence of bad news is good news in the case of Pandora at the current point of the restructuring plan and at current price levels. Below some important slides from the earnings call and bullet points from the press release.

  • The 2019 financial guidance for organic growth and EBIT margin excluding restructuring costs is unchanged.
  • Organic growth was -7% and total like-for-like sales-out growth (like-for-like) was -10% in Q2 2019 driven by decreasing traffic into the physical stores. Like-for-like in Online Stores accelerated to 22%.
Pandora Q2 2019 Slide18
Key highlights
Pandora Q2 2019 Slide19
Organic growth waterfall chart
Pandora Q2 2019 Slide20
EBIT margin waterfall chart
Pandora Q2 2019 Slide23
Financial guidance
Pandora Q2 2019 Slide29
Full year 2019 organic growth guidance waterfall chart
Pandora Q2 2019 Slide30
Full year 2019 EBIT margin guidance waterfall chart
Pandora Q2 2019 Slide36
Online store development
Pandora Q2 2019

Pandora is still trading at rock bottom prices despite still having a very reasonable EBIT margin in the low mid twenties.

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Time series of enterprise value relative to operating income for various jewellery and luxury good companies.
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Time series of enterprise value relative to free cash flow for various jewellery and luxury good companies.
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Time series of annual operating margin for various jewellery and luxury good companies.

Reuters - Recovery signs boost jeweler Pandora despite profit drop