July 19, 2018 / 8:32 AM / 4 months ago

Jeweller Pandora cuts China prices to fight grey market, shares drop

COPENHAGEN, July 19 (Reuters) - Shares in Pandora fell as much as 7 percent on Thursday after the jeweller said it would lower retail prices in China by an average 15 percent to combat a rise in grey market sales.

The Danish jeweller, know for its charm bracelets, warned in May of a slowdown in China, which accounted for 12 percent of the company’s total sales in the first quarter.

Pandora said at the time it would try to limit the grey market in China, where increasing numbers of jewellery pieces are imported from other markets and sold online.

“Pandora jewellery is highly sought after, and the demand has seen a rise in the grey market trade within China. The price reduction aims to limit this, as well as balance the retail price difference in the mainland Chinese market and other markets,” the company said in a statement.

Shares were trading 6.7 percent lower at 422.70 Danish crowns by 0757 GMT. (Reporting by Jacob Gronholt-Pedersen; editing by Emelia Sithole-Matarise)

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