Pandora scales back revenue forecast as Chief Executive Officer resigns

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Jewelry-maker Pandora, headquartered in Denmark, sharply cut back its financial outlook for 2011, saying there had been a stiff fall in demand due to rising input prices.

Pandora's jewelry, particularly its charm bracelets, have seen a sharp rise in sales in the past almost three years following the global financial crisis which slashed demand for diamond jewelry.

Soaring gold and diamond prices have driven jewelry prices higher, leading jewelry buyers to reduce spending.

CEO Mikkel Vendelin Olesen resigned with immediate effect on Tuesday after company Chairman Allan Leighton said he was responsible for the poor results,.

"The CEO is accountable for what happened and that is why he resigns," Leighton said.

Pandora sells jewelry in more than 55 countries, and has increased prices in an attempt to offset the rise in gold and silver prices. Sales fell strongly at the end of the second quarter of this year and that trend accelerated last month with revenues dropping 30 percent.

Pandora said revenues in 2011 would be in line with the $1.27 billion it recorded in 2010. It had after previously predicted a 30 percent increase in sales.

Gold and silver prices have soared this year, after rising sharply in 2010.

Pandora has also been hit by weak consumer demand, with retailers unable to raise prices. Pandora has not been able to raise its prices forced by rising input costs due to soft consumer demand.

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