What's going on?

It�s one of the world�s largest jewelry companies and goes by the same name as a US music streaming service: Pandora�s shares fell by 24% on Tuesday, following a less-than-dazzling outlook for the year. (tweet this)

What does this mean?

Pandora�s slashed its 2018 expectations for the second time this year (the first was in January). It�s now expecting sales growth (excluding the effects of currency swings) to be about half of what it was predicting in January, along with a lower profit margin.

The Danish company blamed lower footfall at UK and US malls (as customers do more shopping online) for sales undershooting initial plans � but it�s still aiming to roll out 50 more stores than expected this year. These new �concept� stores will house Pandora-branded products exclusively, so might help charm customers back.

Why should I care?

For markets: Some investors were actually expecting something like this.

Pandora�s shares have fallen by 50% so far this year � benefiting those investors who�ve bet against the stock (by shorting it). To do this, investors borrow shares from an existing shareholder (usually for a fee) and sell them in the market, hoping to buy them back at a lower price. As Pandora warned its sales growth in China was waning in May (as Chinese customers treat themselves to a fancy Herm�s bracelet, they�re leaving Pandora�s more modestly priced jewelry on the shelves), some investors quit shorting the stock � but 8% of the shares are still out there on loan, their borrowers betting they�ll fall even further.

The bigger picture: The European heat wave’s helped some and hindered others.

Another European company that failed to sparkle on Tuesday was German ecommerce fashionista, Zalando, as its second-quarter sales came in below forecasts, and it lowered sales and profit expectations for the year. Zalando wasn�t prepared for the summer heat wave so didn�t have all the right stuff in place. On the other hand, fellow countryman Beiersdorf � maker of Nivea skin products � raised its sales forecasts for the year, as it saw a boost to sunscreen sales.