Pandora Expects Revenue And Profit Margins To Continue To Sink In 2017.

According to the world clothing and shoe net, after the rapid takeoff in 2013, the Danish jeweller Pandora A/S (CPH:PNDORA)

With the support of global radical expansion, the growth rate in 2016 was only half that in 2015. The Group expects that the growth rate and profit margins will continue to sink in 2017, although it is the most amazing jewelry in the past 5 years.

And completely crush the Tiffany Co. NYSE:TIF (NYSE:TIF) Tiffany who is facing the identity crisis, but the slowdown of Pandora A/S is more obvious to the high end.

The level of jewelry industry is in the doldrums.

In the 2016 fiscal year, Pandora's Pandora A/S rose 21.2% to 20 billion 881 million dkrona compared to 16 billion 737 million dkrona in 2015, up 19.5% from the group target while 40.2% in 2015.

The Group expects that these two drivers will drive revenue up to 230-240 billion dkrona in the same proportion this year, slightly lower than the market outlook of 24 billion 100 million DK, which also means an increase of 13.4%-18.3% between 2016 and a further slowdown than in 2017. It also warned that the first quarter of 2017 will be affected by the change of delivery time and the high contrast base of the same period last year, and the growth rate will fall to the single digit for the first time since the two quarter of 2012.

On Tuesday, 7, the share price of Pandora A/S fell 5.1%, or 6.2%, to 826 DKR, which closed at 880.5 DK on Monday.

According to the local exchange rate, the group's revenue growth in 2016 was 24%, less than 28.9% in 2015.

In the four seasons holiday season, the growth rate was 19%, continuing to rewrite the new 7 quarters since the new low.

The total income in the fourth quarter is 6 billion 602 million DKK, which is 6 billion 715 million DKK in the market.

The biggest negative factor in the Americas period was the closing of 700 North American stores (650 multi brand stores and 50 shop outlets), resulting in a 3% to 1 billion 905 million DBH decrease in revenue compared with 15% in the same period.

EMEA and the Asia Pacific region continued to develop strongly, especially in Italy, France and China.

China's mainland revenue, which accounts for 20% share of the Asia Pacific region, continues to grow at a rate of double. During the fourth quarter, the Pandora brand has already registered on Tmall and has opened an independent online shopping mall. By the end of this year, the concept stores in mainland China have also reached 97, with a net increase of 44 in the whole year, while the same store sales in the local stores have achieved 25% rapid growth.

But Hongkong, which accounts for 10% of the region's revenues, is still not improving. Sales in the same quarter dropped by 20% in the fourth quarter, and revenue fell by 9%.

During the period, the income of the Asia Pacific region increased by 40% to 1 billion 319 million Danish kronor (37% by local exchange rate), and Australia was the largest market in the region.

EMEA increased by 21% to 3 billion 378 million Danish kronor (by local exchange rate increased by 30%).

However, from the data provided by the group, we can see that from the three quarter of 2016, the growth rate of the same store sales of the two most important markets supporting the growth of the Asia Pacific region and the EMEA market has dropped to single digits.

Not only the momentum of revenue growth has weakened, but also the profitability of 2017.

Pandora A/S said that the profit margin of EBITDA will decline from 39.1% in 2016 to about 38%, mainly due to the rise in commodity prices, and the profit margin in the first half of this year will be much lower than in the second half.

In 2016, the Group recorded a core profit of EBITDA 79.22 billion dkrona, an annual increase of 27.5%, of which the 26.4% quarter to 2 billion 711 million dkrona (about 388 million US dollars) in the four quarter is in line with market expectations.

Net profit surged 64% to 6 billion 25 million Danish kronor, which rose 52.2% to 2 billion 93 million DKK in the four quarter, compared with the comprehensive forecast of Thomson Reuters 1 billion 959 million DKK and FactSet.

Last year, the group distributed a dividend of 13 Danish kronor per share, which was 31.6% lower than the 19 Danish kronor which the market expected. However, in 2017 it would increase by nearly 2 times to 36 DKK per share, including a common stock dividend and 3 special dividend.

In addition, the group will open a 1 billion 800 million Danish kronor share repurchase program.

Pandora A/S Pandora CEO Anders Colding Friis pointed out in the earnings report that this shows "our strong confidence in the group business, and also accords with the priority policy of giving shareholders cash feedback."

In the fourth quarter, the concept store contributed 74% of the group's contribution to 26.3% of the 8131 sales points in the world. Its revenue increased by 31% to 4 billion 878 million dkrona year by year, while the same store sales increased by only 3%.

By the end of December, the total number of global concept stores was 2138, a year-round increase of 336. In 2017, the number of new stores has been reduced to 275, of which 50% will be in the EMEA market, and 25% in Asia and the Americas.

Pandora A/S Pandora announced in January that it will enter India, one of the largest jewelry markets in the world, in order to tap the potential for further growth.

In the next three years, the group will cooperate with Pan India, a local distributor, to open 50 stores in the country.

However, the brand's flagship silver products account for only 5% of the jewelry market in India. The local people prefer gold and diamonds. However, some analysts believe that the change of young people's consumption behavior will be conducive to the penetration of western fashion jewelry brands such as Pandora, Pandora, and so on. 40 billion.

It is believed that Pandora A/S, Pandora, will have a local sales network in India market to develop a more mature sales network and then withdraw itself. This is the practice of the group.

In the past 3 months, the group has bought back the franchise of Belgium and Africa.

More interesting reports, please pay attention to the world clothing shoes and hats net.