The Danish Pandora jewelry company has downtoned its forecast for 2011 and is to replace the company’s CEO.
According to a company announcement, revenues for the company in July alone fell by about 30 per cent compared to last year, with revenues in 2011 expected to be the same as in 2010. This compares with previous forecasts of growth this year of some 30 per cent.
In part, the company’s situation is blamed on increasing raw material prices, but management is also being blamed for the company problems.
“Our growth has been impacted by the cumulative effect of substantial price increases in
the light of soaring commodity price increases. In addition our sales, marketing and operational execution has been poor in many cases and is as big a contributory factor,” the company says in its announcement.
It adds that CEO Mikkel Vendin Olesen has resigned from the company with immediate effect.
“Current Board Member Marcello Bottoli will become interim CEO and the Company will embark on recruitment for a new CEO,” it adds.
"Although our price increases combined with some destocking are significant contributors to our slowdown in sales and profitability, our own inadequate operational sales, and marketing execution is as big a factor," Board Chairman Allan Leighton says.