As for the decline in the group’s performance, former CEO Anders Colding Friis admitted that it was mainly affected by the downturn in retail sales in the United States and grey business in China, and that more and more of the brand jewelry was imported into China through the secondary market and sold online. The group is actively taking measures to curb the decline and minimize the flow of its products into China through other channels.
To balance the market, Pandora announced a 15% reduction in retail prices in China on July 19, including 170 physical stores, brand official websites and Tianmao flagship stores in China.
In addition, the high base is also one of the reasons for Pandora’s weak growth in the Chinese market in the quarter. With the gradual saturation of the market, the speed of brand expansion in the Chinese market has stabilized last year. According to fashion headlines, Pandora’s sales in the first quarter of last year in China soared 125% to $62.54 million, a huge gap from this year’s decline.
Anders Colding Friis has resigned as a result of a dramatic downturn in performance, and the brand is looking for a replacement. Jeremy Schwartz, the former CEO of the Body Shop, became chief operating officer of the brand in September. He will take charge of related affairs with CFO Anders Boyer until Pandora finds a new CEO.