Pandora has once again recorded an increase in revenue
Pandora jewellery defies odds
Posted November 19, 2013 | By Emily Mobbs • Former Editor
Despite what many would regard as a difficult economic climate for Australian retailing, recent results show that Pandora is defying the odds and has announced a 25 per cent increase in same-store sales.
International jewellery brand Pandora has continued its strong performance for 2013; having released results for Q3 that show increased sales across all major operating regions.
Overall company revenue rose by 25.7 per cent, compared to the same period in 2012, to DKK 2.25 billion (AU$434 m). Net profit for the period was DKK 612 million (AU$118 m)
Europe, “Other Americas” and “Other Asia Pacific” regions reportedly drove the increase in sales. While revenue in the US and Australia were impacted by unfavourable exchange rates, both countries still achieved positive results.
Australia, accounting for 5.8 per cent of third quarter group revenue, recorded an 8.3 per cent (or 31.6 per cent in local currency) rise in sales to DKK 133 million (AU$25.7 m). Like-for-like (same-store) sales for concept stores increased by 25.2 per cent.
According to the Danish company, the results in Australia were fuelled by successful new product launches as well as an improvement to the overall store network.
When commenting on the results, Pandora Australia president David Allen explained that the key to having a strong store network relied on a “balanced approach” that incorporated both increasing the number of concept stores as well as having ongoing commitment and support from retailers that stocked the brand.
Allen added that Pandora’s main goal for the third quarter was the execution of planned activities for its stockists.
“Our mid-year sales event held at the end of June and July gave our partners [stockists] the opportunity to keep their inventories relevant before introducing our newer collections,” he said.
“Our rings promotion was also designed to bring consumers in store and ensure that strong momentum continued in this still growing category.”
Breakdown across regions and future plans
Total revenue for the Asia Pacific region achieved a sales increase of 57.7 per cent in local currency to DKK 241 million (AU$46.5 m).
In terms of the company’s other operating regions: sales in the Americas rose 7.6 per cent (14.9 per cent in local currency), and Europe revenue increased 46.5 per cent (50.5 per cent in local currency).
As Jeweller reported earlier this month, Pandora has updated its 2013 financial expectations for a second time. The company now expects revenue for the year to be about DKK 8.6 billion (AU$1.6 b), up from its adjusted forecast of DKK 8 billion (AU$1.5 b). The company anticipates to open approximately 195 concept stores this year.
Pandora is headquartered in Copenhagen, Denmark, and is sold in more than 70 countries.
Background reading
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Pandora showcases new collections
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