INTERNATIONAL – A Danish jewelry maker known for attracting hedge-fund attacks has just added over $1 billion to its market value.
Copenhagen-based Pandora A/S, which produces more jewelry than any other company in the world, has seen its share price soar about 30% this week after its new chief executive officer, Alexander Lacik, unveiled a set of quarterly results that reassured the market the company has the right strategy. More specifically, investors now believe that a brand relaunch will pay off.
The stock rose 10% on Tuesday and added as much as 15% Wednesday after analysts published notes praising Pandora’s results and its new management.
“We’re surprised in a positive way by the effect Pandora’s marketing initiatives have had in Italy and the U.K.,” Janne Vincent Kjaer, vice president of equities at Jyske Bank, said in a note. She’s now advising clients to buy shares, because she sees “better momentum in the stock.” Pandora’s operating profit still fell, but it committed to its full-year guidance.
Lacik, who joined in April, said in a phone interview that he wished he’d been able to present better growth rates. But he also expressed some satisfaction that he was able to steer clear of the profit warnings that have repeatedly dragged down Pandora in recent years.