Pandora happy as it widens offer, grows in China, France, Italy, Australia despite US, UK woes

By

Sandra Halliday

Published
May 9, 2017

Jewellery giant Pandora had a good Q1, the Danish firm said Tuesday, with revenue from its owned retail stores leaping ahead, although not every market was buoyant.

While the company saw strength in France and Italy, and Asia Pacific surged due to Chinese grwoth, the Americas saw a decline and the UK was hurt by the falling value of the pound.

So, let’s look at the numbers. Overall revenue rose 9% to DKK5.196bn (£589m) and was up 8% in local currencies. Pandora’s owned retail stores saw revenue surging 39% to now make up 38% of group sales. Comparable sales in Pandora’s own stores rose 8%.

Revenue from the EMEA region rose 5%, or 9% in local currencies, boosted by those higher sales in France and Italy but dented by that UK weakness.

A strong performance in important growth markets such as China in Asia Pacific saw revenue rising 44% (40% in local currencies) with the region now accounting for 25% of group revenue.

But the Americas decreased 5% (or an even worse 9% in local currencies), including a negative impact from network restructuring in the US.

The company said its ambitions to offer a full jewellery line-up are progressing with revenue from rings, earrings and necklaces/pendants all up more than 40% and with the three categories now representing 25% of total revenue

That all added up to higher profits as EBITDA rose 7% to DKK1.879bn, although the gross margin was 73.3%, down from 74.6% a year ago as it was hurt by currency headwinds and the product mix.

CEO Anders Colding Friis said he was ‘satisfied” with the results, and “very pleased” with the performance in its important growth markets. “Some of our most developed markets continue to perform,” he said, adding that revenue from Australia up 27% but that the retail climate in the US remains difficult.