Phu Nhuan Jewelry JSC, Vietnam's biggest listed jewelry chain, plans to reset expectations. The company plans to ask for consent to pare its 2026 sales target to 39.06 trillion dong, a reduction from 48.66 trillion dong previously. It also forecasts a 6.27 trillion dong loss, reflecting a planned 7.07 trillion dong provision tied to its exchange and buyback policy for customers.
"Adjusting the target, anticipating provisions and preparing capital are part of PNJ's comprehensive assessment of the impacts and proactive implementation of necessary changes during the restructuring phase," PNJ said.
The strategic pivot follows a diamond-smuggling probe that rattled confidence in the trade. Authorities detained Dang Ngoc Thao, who previously led PNJ's fully owned gem-certification arm, PNJ-LAB, in a transnational investigation. According to police statements last month, more than 30,000 diamonds tied to the case ended up with individual buyers instead of moving through PNJ's store network. Investigators also said PNJ's import paperwork was in order and that its diamond distribution complied with regulations.
Against that backdrop, PNJ says it is working to fortify its balance sheet, win back customers and rethink its store footprint, all while navigating thinner profitability and a tough diamond market.
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The strain is already visible. In July and August, PNJ recorded a roughly 61 billion dong loss even as revenue for the period rose 4.5% year over year. Gross margin narrowed to roughly 10% from about 18.5%, with PNJ pointing to margin pressure, adverse trends in the diamond market and seasonal effects.
Excluding the proposed buyback provision, PNJ pegs 2024 after-tax earnings at about 800 billion dong, far short of the earlier target of roughly 3.41 trillion dong. Shareholders will vote on the updated targets and the provision at a special meeting on Oct. 21.
To fund the turnaround and working capital, PNJ intends to secure up to 8 trillion dong over the next three years, with details to be outlined at the October meeting. In a separate move, roughly 700 billion dong from a loan organized by Chairwoman Cao Thi Ngoc Dung's family is already in use.
This is a classic retailer reset: lower goals now, a large provision to clear the decks, and a funding plan to bridge the rebuild. The key tells to watch next are customer traffic, margin recovery and how the October vote shapes the capital plan. If PNJ can convert compliance reassurances and a cleaner balance sheet into renewed trust, the turnaround gets a real shot.
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