Pandora’s box is filling up as shares bounce back from eight-week slump
The world’s biggest jewellery maker saw shares plunge 7.3% then claw back to a 2% drop after saying price cuts in China will have a limited effect
Copenhagen — Shares in the world’s biggest jewellery maker, Pandora, bounced back from their worst slump in eight weeks after the company said price cuts in China will have no major impact on operating margins and only a limited effect on revenue. After initially plunging 7.3% in Copenhagen trading, Pandora shares were down less than 2% by about 11.30am Copenhagen time. In an e-mailed response to Bloomberg, Pandora said the price cuts in China "will not have any significant impact on our earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin". "We expect limited impact on revenue as the lower prices are expected to be offset by higher volumes — including a decrease in grey market trading benefiting our own channels. In the longer run, it is, of course, our view that the lower prices will benefit our business in China and the company as a whole." In a stock exchange statement earlier on Thursday, Pandora said it will cut retail prices on most products in Chin...
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