Pandora shares fall on price cuts in China

Danish jeweler Pandora AS cut its retail prices on most of its jewelry sold in China by 15% to combat the sale of its goods through unofficial channels in the country.

Shares traded as much as 7.2% lower on the day following the news.

“Pandora jewelry is highly sought after, and the demand has seen a rise in the grey-market trade within China,” the company said in a statement.

“The price reduction aims to limit this, as well as balance the retail price difference in the mainland Chinese market and other markets.”

Since entering China in 2010, Pandora said it has grown its revenue by double or triple digits each year as the company has opened more stores, entered new cities and expanded its online presence. Presently, it has over 170 concept stores in more than 50 cities in China.