Vietnamese jewellery retailer Phu Nhuan Jewelry (PNJ) has downsized its store network and workforce in the third quarter of FY26, as it navigates challenging trading conditions and weakening consumer confidence.
According to the company’s latest financial disclosures, PNJ operated 424 stores as of September 30, down 30 from June, while its workforce fell to 7123 employees from 8164 at the end of December.
PNJ reported a net loss of nearly VND258 billion (approximately US$10 million) in the third quarter, compared with a net profit of VND496 billion in the corresponding period last year.
The restructuring comes amid pressure on consumer confidence following controversy surrounding P-Lab, PNJ’s diamond-inspection subsidiary.
The issue reportedly prompted more customers to request refunds, sell back or exchange previously purchased jewellery, putting additional pressure on the retailer’s inventory management and cash flow.
The company has also faced selling pressure from foreign investors, with funds including Dragon Capital, T Rowe Price and VinaCapital among those reportedly reducing their holdings.
Speaking at an extraordinary shareholders’ meeting last month, PNJ chairwoman Cao Thi Ngoc Dung described the current situation as the most challenging period in the company’s nearly 40-year history, according to local media reports.
- Further reading: UK PE buys stake in PNJ Vietnam.
