On August 9, Danish jewellery maker Pandora announced that its CEO, Colding Friis, would resign on August 31 and that the company was looking for a suitable successor.
Before finding a successor, Jeremy Schwartz, former CEO of the British body care brand The Body Shop, will be Pandora’s new CEO, working with Pandora’s CFO Anders Boyer to take charge of the company’s business starting in September.
Friis has been Pandora CEO since March 2015. Bloomberg data show that since he took office, the company’s share price has fallen by 15%. By contrast, shares in the same industry fell by an average of 3.1% over the same period.
Just before Friis announced his resignation, Pandora issued a profit warning on Aug. 6 for the year since 2011 and cut its sales growth target by 3%. Meanwhile, Pandora announced a round of 397 layoffs, including more than 200 workers at Thailand’s new plant.
Berenberg analyst Zuzanna Pusz said he believed Colding Friis’s departure would be seen as a positive sign given the eagerness for restructuring.
The main product of Pandora, which was born in Denmark in 1982, is Beaded bracelet. Its beaded style allows people to freely match a unique style. But in recent years, sales of this flagship product are not satisfactory.
Friis has also told the media that Pandora’s beading appeal to consumers has declined, and that insufficient inventory in wholesale outlets has also affected revenue. “The sales of beaded products, both old and new, are not as good as we expected. Consumers now prefer less beads on bracelets.” He once said.
To cope with this change in the market, early this year Friis developed a four-year strategy for Pandora to increase the proportion of earrings, rings, necklaces and other products in terms of products, adding 100 new products in 2018. Although Friis is about to leave, the board has decided to continue its implementation.
As for the next CEO’s job, Peder Tuborgh, Pandora’s chairman of the board, said the focus was on three areas: first, restoring Pandora’s relationship with the stock market; second, strengthening communication with investors in terms of prospects, performance and goals; and third, slowing down the pace of new store expansion and investing in electronics. Business affairs.
Pandora will put more discount on Black Friday maybe.