Author Topic: CPH:PNDORA - PANDORA A/S  (Read 2705 times)

whiterose

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Re: CPH:PNDORA - PANDORA A/S
« Reply #20 on: August 08, 2018, 07:27:58 AM »
https://www.bloomberg.com/news/articles/2018-08-07/pandora-s-1-billion-share-plunge-starts-fingerpointing-at-ceo

Quote
The last time the shares in Pandora A/S fell as much as they did on Tuesday, the jewelry maker fired its chief executive officer. So it’s no surprise that question marks are now growing next to the name of the current CEO, Anders Colding Friis.


whiterose

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Re: CPH:PNDORA - PANDORA A/S
« Reply #21 on: August 08, 2018, 10:57:53 PM »
Quote
CEO OF PANDORA STEPS DOWN
August 9, 2018

PANDORA today announces that Anders Colding Friis is stepping down as President and CEO of the Company effective as of 31 August 2018. The Board of Directors of PANDORA would like to thank Anders Colding Friis for his hard work and commitment over the last three and a half years.

During the Capital Markets Day held on 16 January 2018, the Company presented its strategic direction towards 2022. The Board remains fully committed to this strategy and recognises the importance of its successful execution. To this end, the Company will be further strengthening its management team at the same time as a search for a new CEO is underway.

Jeremy Schwartz will be joining PANDORA as COO effective as of 1 September 2018. Jeremy Schwartz is a former CEO of The Body Shop and has previously held senior positions at several other multinational companies. PANDORA’s CFO, Anders Boyer, and COO, Jeremy Schwartz, will be jointly responsible for managing the Company and leading the execution of PANDORA’s strategy with the full support of the Board of Directors until the appointment of a new CEO.

Peder Tuborgh, Chairman of the Board of Directors, says: “The Board recognises the important role Anders Colding Friis has played in leading the Company and in particular in developing and articulating the right new strategy assuring the future success of PANDORA. Pending the appointment of a new CEO, I am delighted that we have Anders Boyer and Jeremy Schwartz on board to take the lead.”

As part of the Company’s effort to strengthen its leadership team, PANDORA intends to reinforce the Board of Directors with further appointees with relevant business experience in major global consumer and/or retail businesses.

Spencer Stuart has been retained to lead the executive search for both a new CEO and candidates for the Board of Directors.

John Hjorth

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Re: CPH:PNDORA - PANDORA A/S
« Reply #22 on: August 09, 2018, 01:59:32 AM »

PANDORA / CFO: JULY SALES STALL WAS THE HEAD ON THE NAIL

10:48
Pandora's downgrade earlier this week has been heavily criticized by equity analysts and investors, and some consider that the company should have seen and announced the reduced expectations for the stock market at an earlier date.

The company's CFO, Anders Boyer, who first took up his position on August 1, explains that it was only after a board meeting on 6 August that the company had to downgrade its expectations after the sales trend for July was also revealed up to the last weekend in July.

"Even when we saw the numbers for the second quarter earlier in the summer, we could see that they were not quite as they should be. We have carried out a lot of analyzes - and at the end of last week we had management meetings and meetings with the countries.

"In addition, we will have July sales for Friday, which were not quite as we would like, on Friday. As a result, we were able to go into the board meeting on Monday and had to decide to make a downward adjustment, "explains Anders Boyer in an interview with Ritzau Finans.

Pandora downgraded Monday after the end of trading period expectations of revenue growth in local currency in 2018 to 4-7 per cent. from previously 7-10 per cent, and expectations for the EBITDA margin were reduced to 32 per cent. from previously 35 per cent.

The downgrade came just seven months after the company launched its strategy for 2022 and announced its objectives.

Despite the difficult start of the strategy period, Pandora is holding on to its plans.

"We hold on to our long-term goal, because the strategy is right and we do all the right things, but we have to find that the changing steps we're taking takes a little longer than planned," says Anders Boyer.

/ Ritzau / FINANS

Flemming Thestrup Andersen
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petec

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Re: CPH:PNDORA - PANDORA A/S
« Reply #23 on: August 09, 2018, 03:57:25 AM »
Do you guys have a view on whether the company is badly run, or is it just that communication is bad? Is the 2022 strategic plan sensible?

Spekulatius

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Re: CPH:PNDORA - PANDORA A/S
« Reply #24 on: August 09, 2018, 04:13:24 AM »
I don’t quite get why Pandora’s sales are down, even though they are introducing much more new products. Are the declines in their legacy lines much more severe now, or are the new product introductions just not working?
To be a realist, one has to believe in miracles.

John Hjorth

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Re: CPH:PNDORA - PANDORA A/S
« Reply #25 on: August 09, 2018, 04:55:46 AM »
PNDORA 2018Q2 is also out today.

Spekulatius,

If you study the appendix [in Excel], you'll see that charms [to bracelets] are dwindling, while bracelets are holding up, and growth in new products: rings, earrings & necklaces. It indicates to me, that the company is in the process of doing the right thing. [Going from "One Pillar" company to "Multi Pillar" company, ref. the January 2018 Investor Day Business plan presentation].

It'll take a person like you just a few minutes to get a clear & precise overview of what's happening by studying the appendix.

2018Q2 looks resonable good to me, the whole operational situation taken into consideration - the pendulum has to me swung too far out here for the share price.

Edit:

I was personally a bit puzzled about charms dwindling, while bracelets basically are holding up. Think of it this way: Say, your are a female fan of Pandora bling, already owning a bracelet with some charms, and wanting to add some more Pandora stuff. Now you can not only add more charms, you have the option to buy rings, earrings & necklaces, too. So, the new products actually in some way compete with charms.
« Last Edit: August 09, 2018, 05:13:30 AM by John Hjorth »
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

Spekulatius

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Re: CPH:PNDORA - PANDORA A/S
« Reply #26 on: August 09, 2018, 06:30:23 AM »
John, thanks I got that. It seems that the new products can’t offset the decline in Charms ( Pandora’s main / legacy. Product). This is good and bad because Pandora is known for charms and they have to compete with other companies with their newer products.

Pandora looks abut like coach a few years ago- a brand with some equity that has to redo its product portfolio. Worked in COH’s case , but wasn’t an easy ride, but that is true for most turnarounds.
To be a realist, one has to believe in miracles.

peterHK

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Re: CPH:PNDORA - PANDORA A/S
« Reply #27 on: August 09, 2018, 12:36:48 PM »
The issue for me here is that directionally, the economics of this business are getting worse.

With a turnaround like TRIP, you had the potential for things to get better as growth that was offset by declines started to show through. In any turnaround to really see a valuation lift, in my experience you needed to see some part of the business shine through, not just stabilize.

With Pandora, as they're investing more in the physical channel, all I can see is ROIC's getting worse, and part of why this business was so good was ROIC's were fantastic as it was a capital light model. Worse ROIC means a worse multiple. I also see risks to them because they're not playing in the same rarified air as LVMH for instance, where even though there is a black market for knockoffs, there is huge demand for the real deal. Pandora IMO just doesn't have the cache to really stem the grey/black market alternatives in China, which is what everyone is worrying about.

So I can see Pandora stabilizing, maybe, but I don't think that's necessarily enough for an investment case here.

John Hjorth

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Re: CPH:PNDORA - PANDORA A/S
« Reply #28 on: August 10, 2018, 01:37:01 AM »

Do you guys have a view on whether the company is badly run, or is it just that communication is bad? Is the 2022 strategic plan sensible?

Pete,

I don't think the company was badly run, while the stock has now tanked two times, first time in May 2018, in total about 50 percent. It was a communication crisis with analysts and investors loosing trust in the company, with the opinion the downgrade was too long on it's way [somehow, this situation to me has a lot of similarities to what happened with NVO in late 2016]. It's a management judgement call when to downgrade growth. I mean how much information & data do you need to have to be sure [confident] that growth is actually slowing down, when you're studying internal daily, weekly, monthly & quarterly sales data? [Pandora has them all], as to the contrary of just experiencing a short & temporary "blimp"/"dent" in sales? - I certainly don't have the answer.

The strategic plan seems sensible to me personally. I actually think it's the only option the company has. But as mentioned by Spekulatius and PeterHK, that does not make it easy to execute.

With regard to new management, here is an article about the new COO & CFO [interim new management untill new CEO] from Boersen.dk [here outlined, because it's behind paywall] of yesterday. It does not read bad to me.

- - - o 0 o - - -

This morning I was reading Shareville [an investment board provided by my broker] to get a feeling of the sentiment among the Danish retail investors. Funny place! The bears now call PNDORA a dead cat bounce! [ : - D]


Here is one comment of yesterday early from a bull, that makes sense to me:

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If you look at Pandora’s financial reports you will see that 2016 & 2017 have been the best years for both revenue & earnings by some margin. In the short term the stock market is often a popularity contest. That is why Pandora’s recent price development resembles more a company that is going bankrupt than one that has record earnings. That is why William Demant trades at a P/E of over 40, whilst at current prices Pandora trades at a P/E of 6.8. Which stock do you think is the best risk/reward play here going forwards based on probabilities? At a P/E of 6.8 the risk/reward is now actually starting to look good. The fact management have been a PR disaster has not done the companys reputation any favours and they have lost popularity. When analyst expectations going forward are low [and they are based on a P/E of 6.8] it is also a lot easier to beat those expectations. When that happens, and it surely will at some point, the stock is likely to rally. I imagine value investors will be watching with interest when Pandora report shortly.
« Last Edit: August 10, 2018, 02:12:34 AM by John Hjorth »
”In the race of excellence … there is no finish line.”
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John Hjorth

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Re: CPH:PNDORA - PANDORA A/S
« Reply #29 on: August 11, 2018, 03:05:18 AM »
Boersen.dk [August 10th 2018]: Newly appointed CFO: We are in a separation phase with the market.

Mr. Boyer started in his new job at Pandora August 1st, and on his 8th working day in the new job, directly after finishing the 2018Q2 reporting, he started patching the relationship between the company and the market. Please note the comments about "like to like" figures for sales in the article, compared to the 2018Q2 company announcement. The company has so far refused to release these figures to the market, and has now yielded.

- - - o 0 o - - -

... Now you can not only add more charms, you have the option to buy rings, earrings & necklaces, too. So, the new products actually in some way compete with charms.

... It seems that the new products can’t offset the decline in Charms ( Pandora’s main / legacy. Product). This is good and bad because Pandora is known for charms and they have to compete with other companies with their newer products.

Pandora looks abut like coach a few years ago- a brand with some equity that has to redo its product portfolio. Worked in COH’s case , but wasn’t an easy ride, but that is true for most turnarounds.

Spekulatius,

True.
« Last Edit: August 11, 2018, 03:25:48 AM by John Hjorth »
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai