Overall group revenue for the period increased 53.3 per cent to DKK 1.9 billion (A$400 million), and net sales income rose 22 per cent to DKK 431 million (A$84m).
All geographical regions experienced double-digit growth, driven reportedly by an increase in sales of recently-launched products, continued high replenishment rates and new store openings.
Australia, accounting for 7.9 per cent of second quarter group revenue, recorded a 16.8 per cent (or 18.2 per cent in local currency) rise in sales to DKK 153 million (A$30m), compared with the same period last year.
The figures were said to be the result of continued high demand for the jewellery company’s offering – something that was fuelled by successful product launches as well as increased focus on branded distribution channels.
Pandora Australia president David Allen confirmed this statement to Jeweller, adding that the decision to launch four collections in the first six months of 2013 – as opposed to only one last year – had proved successful.
“By staging the launch of our new collections we have been able to again offer freshness for our partners [retail stockists], allowing them to be able to regularly engage with their consumers, bringing them into store more regularly,” Allen said.
He explained that the company’s goal had been to attract new consumers, continue to engage with existing customers and to focus strongly on gifting.
“Mother’s Day was very successful again this year. For us and our partners, this trading period is very important and we supported it strongly with desirable commercial product, a strong promotion and an engaging marketing campaign that was executed very well.”
Like-for-like (same store) sales for concept stores in Australia also increased 22.4 per cent, compared to the same period last year.
Furthermore, total revenue for Asia Pacific – including Australia – was DKK 244 million (A$50 million). This was an increase of 42.4 per cent in local currency.
Breaking it down further
In terms of the company’s other operating regions: sales in the Americas rose 52.1 per cent (54.3 per cent in local currency), and Europe revenue increased 43.5 per cent (42.4 per cent in local currency).
Overall revenue from the brand’s charms category increased by 44.3 per cent, silver and gold charms bracelets rose by 31 per cent, rings recorded an 18.2 per cent increase and the “other” jewellery category increased by 323.6 per cent – said to be primarily driven by other bracelets.
Despite the strong results, it was noted that comparable figures for the second quarter in 2012 were impacted by the jewellery brand’s stock balancing campaign that was conducted in the first two quarters of 2012. The initiative involved replacing unwanted products after demand collapsed in 2011.
Looking ahead
As Jeweller reported earlier this month, Pandora updated its 2013 financial expectations following its strong performance in the first half of this year. The company now expects revenue for 2013 to be about DKK 8 billion (A$1.6b), up from its original forecast of DKK 7.2 billion (A$1.4b).
“Our strategy of delivering affordable luxury is becoming increasingly relevant, and although there are still many areas in which we can improve we are pleased with our progress,” Pandora CEO Allan Leighton said.
The company expects to open approximately 175 concept stores this year.
Locally, Allen said Pandora and its retail stockists were well prepared for the second half of 2013, including the critical Christmas trading period.
Pandora is headquartered in Copenhagen, Denmark, and is sold in more than 70 countries.
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