Pandora’s Bottom Line hit by COVID-19 Surges
Pandora has published its Q2 results for 2020 (ended June 20), showing a loss of $27.9 million, compared to a Q2 profit of $84.3 million in 2019, IDEX Online reports. Pandora quoted “COVID-19 surges” as the main reason for the loss.
Pandora’s revenue fell 39% to $459.2 million for the second quarter. Excluding closed stores, like-for-like sales rose 8%. Revenue for the first half of the year plunged 26% to $1.13 billion. In addition, the pandemic forced the Danish jeweller to close 90% of its 7,300 outlets.In February, Pandora said it expected its full-year sales to drop 3%-6%, but now revised it has revised that figure to 14%-16%, “assuming the pandemic gets no worse”.
Alexander Lacik, president and CEO of Pandora, said: “COVID-19 has changed our societies and challenged global brands around the world. The pandemic may leave a lasting effect on consumer behaviour, our ways of working and use of technology. Pandora’s business model has proven its resilience during the crisis, and our consumers have continued to engage actively with the brand despite closed stores”.