The Danish company’s sales for the quarter were DKK2 billion (A$351 million) and its net profit increased by 29.6 per cent, compared with the same period last year, to DKK438 million (A$76.8 million).
All major markets experienced double-digit rises, with Asia Pacific increasing by 27.7 per cent (year-on-year) in local currency terms.
Representing 7.4 per cent of total group revenue was Australia, which reported DKK148 million (A$26 million) in sales, an increase of 19 per cent in local currency compared with Q1 2012. Like-for-like (same store) sales for the brand’s concept stores also increased by almost 16 per cent from the previous year.
Pandora Australia president David Allen said that the region’s strong performance – which followed a successful Q4 2012 – was primarily driven by both its Valentine’s Day range and accompanying marketing campaign as well as the launch of a new collection in March.
“Both of these collections were commercially very strong, performed exceptionally well and were positively received by both our partners [stockists] and our consumers,” Allen explained.
As previously reported by Jeweller, Pandora Australia experienced strong sales results for Valentine’s Day, which the company credited to an overhaul of its marketing campaign for the trading period. Also, its new collection launch had marketing support, including TV promotion.
“Our visual merchandising initiatives also continue to create strong and relevant in-store theatre that makes it easier for our partners [stockists] to engage their consumers.”
In addition, the brand’s charm, bracelet and ring categories all reportedly performed well.
Global perspective
Outgoing Pandora CEO Bjørn Gulden replicated these sentiments when commenting on the company’s global results: “Although it is still early in the year, we have had a strong start. Revenue and earnings increased across all regions, positively impacted by the delivery of the Valentine’s Day collection in Q1 2013, instead of, as historically, in the fourth quarter.
“Even more importantly, our sales-out in concept stores has also strengthened with double-digit growth in our four major markets. Some of this increase is due to the fact that Easter was in Q1 this year compared to Q2 last year, but we believe most of it is due to better products, improved marketing and better execution in the stores.”
The regional revenue breakdown for the first quarter included: an increase of 38 per cent (38.6 per cent in local currency) in the Americas; 50.4 per cent (50.6 per cent in local currency) in Europe; and 26.1 per cent (27.7 per cent in local currency) increase in Asia Pacific.
The company noted that, as expected, gross margin decreased to 65.6 per cent for the period, compared with 71.6 per cent in the first quarter of 2012. It still expected revenue for 2013 to be above DKK7.2 billion (A$1.3 billion) and planned to open approximately 150 concept stores globally.
Pandora is headquartered in Copenhagen, Denmark and manufactures its jewellery in Thailand. The brand’s product offering is sold in more than 70 countries.
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