Shares in Pandora fell as much as 7 percent on Thursday after the jeweler said it would lower retail prices in China by an average 15 percent to combat a rise in gray market sales.
The Danish jeweler, know for its charm bracelets, warned in May of a slowdown in China, which accounted for 12 percent of the company's total sales in the first quarter.
Pandora said at the time it would try to limit the gray market in China, where increasing numbers of jewelry pieces are imported from other markets and sold online.
"Pandora jewelry is highly sought after, and the demand has seen a rise in the gray market trade within China. The price reduction aims to limit this, as well as balance the retail price difference in the mainland Chinese market and other markets," the company said in a statement.
Shares were trading 6.7 percent lower at 422.70 Danish crowns by 0757 GMT.