Pandora A/S PNDZF, the Denmark-headquartered jewelry manufacturer and retailer, has announced it will no longer use mined diamonds in its product line.
What Happened: The company is replacing the mine-based gems with a diamond collection created in laboratories. According to the company, lab-created diamonds are identical to mine-excavated diamonds and share the same optical, chemical, thermal and physical characteristics.
The lab-grown diamonds are being branded under the Pandora Brilliance banner and will initially be sold in the U.K. before a wider international launch in 2022.
Why It Happened: Pandora’s decision to drop mined diamonds is the latest effort by the company to incorporate sustainability into its product creation. Last June, the company announced it would cease relying on newly mined gold and silver and switch to using recycled precious metals in its jewelry.
“They are as much a symbol of innovation and progress as they are of enduring beauty and stand as a testament to our ongoing and ambitious sustainability agenda,” said CEO Alexander Lacik. “Diamonds are not only forever, but for everyone.”
See Also: Benzinga Stock Market Live: Don't Blindly Follow Traders On Social Media
What Else Happened: Pandora also reported its Q1 earnings this morning, with $727.6 million in revenue, up from $674.6 million in 2020 but considerably lower than $3 billion in 2019.
On the plus side, the company reported an increase in U.S. consumer demand due to the infusion of federal stimulus checks, with online sales up 136% year-over-year. Pandora upgraded its full-year guidance from above 8% to above 12% and its EBIT margin from above 21% to above 22%.
On the downside, 30% of Pandora’s worldwide retail stores were closed due to the continuing COVID-19 pandemic while the company acknowledged its China sales continued to be weak.
“Today, we can turn the page on the next chapter for Pandora and announce our new strategy, moving us from turnaround to sustainable growth,” said Lacik.
PNDZF Price Action: At last check Tuesday morning, Pandora was trading at $116 a share.
(Marilyn Monroe performing “Diamonds Are a Girl’s Best Friend” from the 1953 film “Gentlemen Prefer Blondes.” Photo courtesy of Cinema Crazed.)
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
