The company’s global revenue in 2014 increased 32.5 per cent to DKK11.9 billion (AU$2.3 b), with Pandora CEO Allan Leighton saying the fourth quarter had been its “strongest ever”.
“Again we increased our top-line to record high levels, driven by strong growth across all geographies and product groups,” he said. “Revenue from charms and bracelets increased more than 25 per cent, while revenue from rings increased to more than DKK1 billion (AU$194.7 m).
“During the year we also opened our concept store number 1,400, as part of our continuous focus on increasing the share of revenue from our concept stores.”
Pandora Australia contributed to this success – the region’s revenue accounted for 6.7 per cent of the company’s total revenue.
For the fourth quarter of 2014, sales in Australia rose 30.4 per cent to DKK328 million (AU$63.9 m), representing the seventh consecutive quarter that the region’s revenue exceeded 20 per cent.
The result was said to have been driven by continued strong sell-through as well as the opening of 12 brand-only stores (including company-owned and franchisee), which brings the total number in Australia to 90.
Pandora Australia’s total revenue for 2014 also increased 25.6 per cent to DKK806 million (AU$156.9 m), with same-stores sales up 25.5 per cent compared to the previous year.
Changing times
Most interesting was the fact that, for the first time, Pandora’s ring category contributed more revenue in Australia than bracelets. The combined charms and bracelets category achieved DKK504 million (AU$98.2 m) in sales – an increase of 13.8 per cent compared to the previous year – while the rings category recorded DKK149 million (AU$29 m) in revenue, a steep increase of 52 per cent.
“Our ring sales have more than doubled in Australia since 2012,” Pandora Australia president David Allen said. “This has been a clearly defined category strategy that combines merchandising, sales and marketing, aligning all commercial functions within the business.”
Allen noted, however, that the charms and bracelets category also continued to perform “better than ever”. “We understand the opportunities in each of our product categories and we are managing each of them with these opportunities in mind,” he said. “[The ring category] is right where we expected it would be.”
The full year results were released only weeks after Pandora Australia’s shock announcement that it would be ending its affiliation with Australia and New Zealand’s three jewellery buying groups.
Background reading: Buying groups hit back over Pandora
When asked if he expected this would affect the financial results for the coming year, Allen commented, “Our distribution network is continuing to change. We maintain a commitment to all of our partners and our different distribution channels and it has always been our priority to work closely with all of our retail partners to provide the retail experience that our consumers expect.
“This focus will not change as the way that our brand is represented and the experience that our consumers receive is critical to our continued success.”
Australia's performance
Pandora Australia’s revenue represented part of a 53.5 per cent rise in revenue for the Asia-Pacific region. The Americas and Europe also recorded double-digit increases of 19.3 per cent and 41.1 per cent, respectively.
It was noted in the financial report that Pandora expected to achieve more than DKK14 billion (AU$2.7 m) in revenue during 2015. It was said that one of the company’s main focuses would be on the continued expansion of its network, with 300 new brand-only stores to be opened this year.
Pandora has been operating in Australia since 2004 and is currently sold in more than 393 stores across the country.
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