Pandora

Deminor is investigating elements which led to severe losses for investors in Pandora A/S (ISIN: DK0060252690 - Ticker: PNDORA DC EQUITY - Nasdaq OMX Copenhagen Exchange - hereafter the "Company"), a Denmark-based company designing, manufacturing and selling jewellery at affordable prices and whose ordinary shares are listed and traded on the Copenhagen Stock Exchange (Nasdaq OMX).

 

On May 19th, 2011, Pandora presented its interim report for Q1 2011 and confirmed its financial outlook for 2011 (30% revenue growth and EBITDA margin of 40%). However, the figures were below the analysts' expectations. Despite the financial forecast and the reassuring tone of Pandora's communication on the consequences of its new pricing strategy, the market reaction on May 19th, 2011 was severe. The stock price dropped by almost 30% in a few trading days. During the subsequent weeks, the stock price stabilized at levels slightly above DKK 150.

 

On August 2nd, 2011, Pandora issued a profit warning announcing a new sales and earnings outlook for the year 2011 (hereafter the "Profit Warning"). The guidance for expected growth revenue changed from no less than 30% to 0%. The CEO resigned with immediate effect. Pandora indicated that the downward revision had been made because of the cumulative effect of the pricing strategy in the light of soaring commodity price increases (gold and silver) and the impact of the destocking by retailers due to lower sales-out and an uncertain economic outlook. For Q2 2011, the revenue increased by only 3.6% and the EBITDA decreased by 6.2%. The reaction of the market was a severe and sudden 65.35% drop of the stock price in a single trading day, from DKK 147.2 to DKK 51, representing a destruction of DKK 12.5 billion (EUR 1,68 billion) of market value. The share price even suffered additional losses in the subsequent days.

 

On December 22nd, 2011, following an in-depth investigation relating to the Profit Warning, the Copenhagen Stock Exchange (Nasdaq OMX Copenhagen) reprimanded Pandora for not having communicated the Profit Warning in a timely fashion. The Danish Financial Supervisory Authority confirmed the findings of this investigation on January 10th, 2012.

Each investor who purchased shares between July 18th, 2011 and August 1st, 2011 and/or who held shares on August 1st, 2011 (upon closing of the market) (hereafter the "Proposed Class Period") are invited to contact Deminor before February 15th, 2012 in order to be updated free of charge of Deminor's intentions on the case.

 

Absent of an "opt-out" class action system in Europe, Deminor will only consider legal actions - to be probably undertaken for jurisdictional issues in the defendant's home country i.e. Denmark - only if a sufficient support is received from investors who acquired shares during the Proposed Class Period and/or held shares on August 1st, 2011, it being understood that such period could be reduced / extended (without prior notice) depending on the factual elements of the case.

 

If you would like more information about the case, please contact:

Edouard Fremault (edouard.fremault@deminor.com - + 32 2 674 71 10)
Jean-Philippe Timmermans (jean-philippe.timmermans@deminor.com - + 32 2 674 71 10)