Feb. 21 (Bloomberg) -- Pandora A/S fell the most in six months in Copenhagen trading as the Nordic region’s biggest jewelry maker offered retailers the option of returning products that don’t sell.
Pandora fell as much as 12 percent, the most since Aug. 2, making it today’s second-biggest loser in the Copenhagen all- share index. The stock of the Glostrup, Denmark-based company retreated 2.7 kroner to 82.30 kroner at 9:47 a.m. in the Danish capital.
The shares plunged 84 percent last year, when the company cut its sales growth forecast to zero, sacked its chief executive officer and dropped out of Denmark’s blue-chip index. Pandora was reported to the police in January for failing to publish price-sensitive information in a timely manner. The company said today it will spend as much as 800 million kroner ($143 million) to swap retailers’ old jewelry for better selling products, a decision that will contribute to a 10 percent decline in sales this year.
“Inventory adjustments are hampering the outlook, which is pushing the stock down,” Ole Kjaer Jensen, chief share trader at Sydbank A/S, said by phone. “The report was actually descent as the company is making a good profit.”
Pandora reported 2011 net income of 2.04 billion kroner, beating the median estimate of 1.83 billion kroner in a Bloomberg survey of eight analysts. Pandora said it expects to generate 2012 sales of about 6 billion kroner, which missed the average estimate of 6.66 billion kroner in the survey.
--Editor: Tasneem Brogger
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