One of the most spectacular implosions of a big European stock following an initial public offering in recent years was triggered on Tuesday when Pandora, the Danish jewellery maker, issued a profit warning that wiped about two-thirds off its market value.

Shares in Pandora, best known for the charm bracelets that it sells in 55 countries, fell 65 per cent after it slashed its full-year earnings outlook and parted company with its chief executive less than a year after it came to market in one of the biggest IPOs in Europe in 2010.

Pandora cut its 2011 revenue growth forecast from at least 30 per cent to zero, having upgraded its forecast from 25 per cent on April 18 this year and reiterated this guidance on May 19. It also cut its forecasts for its outlook on earnings and profit margins.