Pandoras Broken Clasp

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What's going on?

On Tuesday, Danish jewelry company Pandora warned investors for the second quarter in a row that its sales and profit would fall short of expectations. Charming!

What does this mean?

Compared to last year, Pandoras sales decreased by 3% in the third quarter, and the company lowered its expectations for the rest of 2018 yet again. Pandoras profit dropped, too, with the jeweler crystallizing just $183 million last quarter, down from around $275 million the same time last year. It seems Pandoras losing shine, disappointing investors on all fronts.


Pandora blamed fewer shoppers hitting the malls (likely as they e-shop from the comfort of their homes) and lackluster interest in its new jewelry lines for the poor showing. There was a glint of gold for the company, however: its still growing relatively quickly in China.

Why should I care?

The bigger picture: Pandoras got a plan.

The company has a new store strategy: open fewer new ones. Where once if you build it, they will come was the majority mantra, in the internet age, rolling out flashy, expensive new stores aint as lucrative as it used to be. For the immediate future, fewer openings will probably mean lower sales growth for Pandora the idea is that, eventually, more sales will come through the companys existing stores. Other retailers have followed the same approach and been the better for it: H&M closed some of its stores this year and Zara slowed down opening new ones. Its either that or risk going the way of Sears



For markets: Rough seas make investors sick.

Investors, understandably, like to know whats going on. They need stability to accurately forecast earnings and value companies, in order to choose which stocks to buy and sell so consistent forecasts are important. With all Pandoras revisions, investors might be twice bitten and now shy about buying its shares in the future.

Originally posted as part of the Finimize daily email.

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