Pandora Holdings Update: Parvus Asset Management Jersey now owns 8.1 million shares.

Pandora A/S is a jewelry company with a focus on charms and carriers, other items such as rings, necklaces, and earrings. As of 2024, the company had 6,785 points of sale worldwide, with net sales distributed across various countries including the US, UK, Italy, Germany, Spain, and China. The company's largest market is the US, accounting for 30.7% of net sales.

Vince Corporation reported mixed results for Q2 FY25, with net sales declining by 1.3% to $73.2 million compared to the same period last year. The company attributed the drop to a 5.1% decrease in wholesale revenue, which was partially offset by a 5.5% rise in direct-to-consumer sales. Brendan Hoffman, CEO of Vince, highlighted the company's focus on maintaining product quality and customer loyalty despite the challenging macro environment.

Despite the sales decline, Vince's net income surged to $12.06 million, a significant improvement from $0.56 million in Q2 FY24. The earnings per diluted share increased to $0.93 from $0.05, and operating income rose to $11.15 million from $1.13 million year-over-year. Gross profit for the quarter stood at $36.94 million, up from $35.13 million or 47.4% of net sales in Q2 FY24. This improvement was driven by a 340 basis point gain from reduced product costs and increased prices, along with a 210 basis point benefit from less discounting. However, elevated tariffs and higher freight expenses contributed to a 170 basis point and 100 basis point cost increase, respectively.

Vince's gross margin improved to 49.9% from 47.4% in Q2 FY24. Selling, general, and administrative expenses decreased to $25.8 million or 35.2% of sales from $34.0 million or 45.8% of sales in the previous year's quarter. The company operated 58 stores by the end of Q2 FY25, a net reduction of three stores since Q2 FY24.

Looking ahead to Q3 FY25, Vince anticipates net sales to remain relatively steady or increase by up to 3%. Adjusted operating income and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) as percentages of net sales are expected to range between 1% to 4% and 2% to 5%, respectively. The company expects to offset about half of the anticipated increase in tariff costs between $4 million and $5 million through various strategies. However, due to uncertainty surrounding current tariff policies, Vince has not provided full-year fiscal 2025 guidance.

Vince withholds fiscal 2025 guidance amid dip in Q2 net sales^[1] https://finance.yahoo.com/news/vince-withholds-fiscal-2025-guidance-124030038.html