SEVERE WX : Flood Warning View Alerts

Pandora's hit jewelry product is now its biggest problem

Here's the thing about fads: They end.Pandora, which makes more ...

Posted: Aug 9, 2018 4:04 PM
Updated: Aug 9, 2018 4:04 PM

Here's the thing about fads: They end.

Pandora, which makes more jewelry than any other company, is being slammed as people lose interest in its charms, the decorative trinkets that are often attached to bracelets.

The Danish company has in recent years become synonymous with charms, which make up over half of its sales. But their popularity is fading, and Pandora hasn't been able to revive it.

Pandora's stock has been cut in half this year, and the company said Thursday that CEO Anders Colding Friis would step down at the end of August.

The announcement caps a tumultuous few days for the company.

Pandora stock crashed 24% on Tuesday after the firm slashed its sales forecast for 2018. On Thursday, it reported that charm sales declined 7% in the first quarter.

"They need to fix the charms challenge," said Soeren Loentoft Hansen, a senior analyst at Sydbank. "The business is very important because it drives traffic to the stores."

Related: Tiffany's booming sales send stock soaring

The company has pinned the blame on a shift to minimalist fashions.

"We've been too optimistic about the new products from our charms collections," Colding Friis told investors during a conference call on Thursday. "Consumers are preferring a simple look with fewer charms. They used to wear six to seven charms, now they wear five."

Loentoft Hansen doesn't buy that explanation. He says people just don't like Pandora's designs.

"I am not worried about charms business in general, but I am little worried about Pandora's charm business," he said.

Related: De Beers admits defeat over man-made diamonds

Anders Boyer, who was recently named chief financial officer at Pandora, acknowledged that the company was going through "a very difficult period." But he said he's optimistic.

"Pandora is here to stay. Pandora is not a fad," he said. "I don't see anything to the contrary when I look into the numbers."

Loentoft Hansen said that while charms are crucial, the company must build its business in other jewelry segments.

Bracelets contribute almost 20% of Pandora's sales, while all other jewelry — rings, earrings, necklaces and pendants — make up less than a quarter.

Lafayette
Partly Cloudy
35° wxIcon
Hi: 41° Lo: 29°
Feels Like: 29°
Kokomo
Partly Cloudy
29° wxIcon
Hi: 38° Lo: 28°
Feels Like: 19°
Rensselaer
Clear
28° wxIcon
Hi: 37° Lo: 27°
Feels Like: 28°
Lafayette
Partly Cloudy
35° wxIcon
Hi: 38° Lo: 28°
Feels Like: 29°
Danville
Partly Cloudy
32° wxIcon
Hi: 39° Lo: 29°
Feels Like: 25°
Frankfort
Partly Cloudy
30° wxIcon
Hi: 40° Lo: 29°
Feels Like: 21°
Frankfort
Partly Cloudy
30° wxIcon
Hi: 39° Lo: 29°
Feels Like: 21°
Monticello
Partly Cloudy
28° wxIcon
Hi: 39° Lo: 29°
Feels Like: 21°
Monticello
Clear
28° wxIcon
Hi: 39° Lo: 29°
Feels Like: 21°
Logansport
Clear
28° wxIcon
Hi: 36° Lo: 28°
Feels Like: 19°
March comes in like a lamb...
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 661673

Reported Deaths: 12573
CountyCasesDeaths
Marion906391639
Lake48389876
Allen35806635
Hamilton32056396
St. Joseph29947512
Elkhart25376414
Vanderburgh21245378
Tippecanoe20000201
Johnson16336359
Porter15957270
Hendricks15813300
Clark11946181
Madison11741316
Vigo11595229
Monroe10328161
Delaware9836179
LaPorte9761196
Howard9055197
Kosciusko8561109
Bartholomew7448147
Warrick7412150
Hancock7404131
Floyd7200169
Wayne6631191
Grant6424157
Morgan6084125
Boone608288
Dubois5903111
Dearborn547067
Cass544399
Marshall5423104
Henry542093
Noble509078
Jackson464566
Shelby460290
Lawrence4180112
Gibson401281
Harrison399663
Clinton395453
Montgomery386783
DeKalb385178
Knox357285
Miami357263
Whitley349136
Huntington343976
Steuben338155
Wabash331176
Putnam329759
Ripley327061
Adams323149
Jasper315943
White297352
Jefferson294873
Daviess285396
Fayette271556
Decatur270888
Greene261280
Posey260831
Wells258274
Scott250350
Clay241044
LaGrange240870
Randolph225576
Spencer217130
Jennings215044
Washington211027
Sullivan203239
Fountain201442
Starke188051
Owen182153
Fulton178237
Jay177728
Carroll176518
Perry173235
Orange171250
Rush164722
Vermillion160442
Franklin159435
Tipton146341
Parke139216
Pike127632
Blackford120627
Pulaski106444
Newton96531
Brown94939
Benton91913
Crawford90613
Martin80114
Warren75814
Switzerland7537
Union67110
Ohio53311
Unassigned0431

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events