Investors took a shine on Tuesday to struggling Pandora, one of the world’s largest jewellery firms, after it launched a revival plan and saw signs of sales recovery.
Jeremy Schwartz, chief operating officer at the Danish charm-bracelet maker, which has 20 shops in London, said: “We are taking immediate and forceful action to address the disappointing aspects of our financial performance in 2018.”
The statement comes after a tough year for the brand, advertised by model Winnie Harlow.
Its new ranges have failed to entice shoppers and it suffered from weaker footfall in some of its main markets. It cut its sales outlook twice over the period.
However, it said today that in the fourth quarter it managed to boost sales to 7.9 billion Danish crowns, up from 7.6 billion. Pandora will now target annual cost savings of 1.2 billion Danish crowns.
The firm’s growth plans include a “facelift” of the website, increasing marketing spend, and a focus on products. Shares in Pandora jumped as much as 16% in early trading.
RBC analyst Piral Dadhania warned however that “execution [of the new plan] against the challenging retail backdrop may be more difficult to achieve”.
