When you think of Pandora… you probably think of the bracelets because that is just about the only thing the company is known for. However, what was once a blessing is now a curse for Pandora. The stock is down over 50% this year, and that is mainly due to changing fads and the declining popularity of the famed charm bracelet. Charm sales were down 7% in the first quarter.
People want simple… and ‘minimalist’ looks – and Pandora charm bracelets are anything but that. Well, the bracelets are, but the charms are not. At least that is the theory of CEO Anders Colding Friis. However, others believe that the bracelets are out-of-style entirely. As if to say, “We aren’t worried about the charm business; we are worried about your charm business.”
We are not a fad… is what Pandora wants you to know, but of course that’s what they want you to know. At any rate, the company will continue to grow the business by moving into other segments of the jewelry market. You know, the rings, earrings, necklaces, etc., are all opportunities for the company. What do you think – is Pandora done for?