Overall revenue for the Pandora Group declined 12.2 percent in third quarter of 2011, the company announced. America, however, was a bright spot.
Even as sales declined elsewhere, the charm maker’s sales in the Americas increased by 4.1 percent in Danish krone, and 13 percent in local currency.
Still, sales elsewhere weren’t as encouraging: In Europe, revenues declined by 28.6 percent, or 27.1 percent in local currency. In Asia Pacific, they declined by 1 percent, or 3 percent in local currency.
In a conference call following the result’s increase, interim CEO Marcello Bottoli blamed the falling sales on the company’s price increases, as executives have in the past.
“We have lost our overall affordable luxury position,” he said. “But more importantly, we have lost density at the entry price points.”
He said that the company plans no further price increases for 2011 and 2012, and certain items have seen price decreases.
It is also taking a “hard look” at its marketing, promotions, and product mix, he added.
“Our offer is too dense, and is not tailored towards regional differences,” he said.
He also said the plan is looking at its store design.
“People like to touch and feel our product,” he said. “A number of our display materials deliver on that, but many others don’t.”
He added that the marketing will now be more focused on individual markets, and that the company also plans to “accelerate the closure of low value dealers in certain markets.”
Pandora also appointed a new chief creative officer, Stephen Fairchild, as well as new president for Pandora Asia.
Its reported net profit decreased by 41.3 percent to DKK 341 million in the third quarter of 2011, compared with a net profit of DKK 581 million last year.