Company News

UPDATE 1-Pandora sticks to sales forecast despite Black Friday U.S. payment glitch

(Adds details on sales systems, background, analyst quote)

COPENHAGEN, Dec 2 (Reuters) - Danish jewellery maker Pandora said on Monday there was no reason to change its sales guidance as a result of Black Friday payment issues at U.S. and Canadian concept stores.

Pandora said in a statement that payments with debit cards, gift cards and loyalty cards were “temporarily affected by an error in a third-party supplier application”, a so-called point-of-sales system.

“Q4 trading up to this point has not given us any reasons to change our guidance given at the Q3 announcement,” Pandora said.

In a bid to win back customers the world’s largest jewellery maker by production capacity has doubled down on efforts to refresh its image but costs related to the revamp have weighed on profits.

Pandora sees full-year sales falling 7-9% and an operating profit margin excluding restructuring costs of 26-27%.

Shares in Pandora fell 2.64% following a report by brokerage Carnegie saying it expected a January profit warning due to IT problems during Black Friday sales in the U.S.

The issue, which Pandora said had also affected other companies, had begun around 11 AM EST and was fully solved at 7 PM EST.

Pandora said the system had been running smoothly in all its other markets and that its online store had not been affected.

“The supplier has provided point-of-sales systems to Pandora for the past 9 years, so contrary to certain reports it is not a new system,” the company said.

Nordnet analyst Per Hansen said investors have yet to be convinced about the company’s announced turn-around plans, so all company statements are “turned and weighed on a golden scale”.

“Investors remain sceptical. Both regarding whether a successful turn-around will actually happen, and in that case, when it might happen,” Hansen said.

Reporting by Nikolaj Skydsgaard; Editing by Alexander Smith and Christina Fincher