Pandora has dismissed its chief executive as EBIDTA plunged 6.2% in its second quarter, and UK sales plummeted 13.1%.
The Danish jeweller, which is chaired by retail veteran Allan Leighton, warned that revenue growth for the year, previously expected to be 30%, would be nil.
Its profit margins projection was also moved from 40% to the low 30s. The profit warning wiped around two thirds off Pandora’s market value.
Its overall sales edged up 3.6% to DKK1.39bn (£163m), however EBITDA plunged 6.2% to DKK 512m (£60m).
The boss of the jewellery chain, Mikkel Olesen left with immediate effect following the update. Pandora sells through 472 stores in the UK, including its own stand alone shops.
The retailer, best known for its charm bracelets, said its growth had stalled as a result of putting up its prices as it attempted to move from mid-market to a more luxury offering. It also said it suffered as a result of operational ineffeciencies.
Leighton said: “Although our price increases combined with some destocking are significant contributors to our slowdown in sales and profitability, our own inadequate operational sales and marketing execution is as big a factor.”
The retailer has instigated a strategic review of “certain elements” of its company strategy. It said it is to “reset” its affordable luxury positioning and improve operationally. It warned this would take 18 months.
Pandora board member Marcello Bottoli will fill the chief executive role temporarily.