In the first quarter of 2016, ended 31 March, Pandora Australia recorded a revenue increase of almost 50 per cent compared with the previous corresponding period. While the exact figure was not disclosed, Jeweller calculated the revenue to be approximately DKK264 million (AU$55 m).
Brien Winther, president of Pandora Australia and New Zealand, said he was “very pleased” with the results, which were driven by strong same-store sales, “operational improvement”, and the opening of 12 concept stores in the last year.
Winther noted, however, that the current period of “high growth” was expected to normalise going forward. “It would be unrealistic in what is a challenging market environment to expect growth of 50 per cent year-on-year to continue,” he commented.
Australian sales accounted for approximately 30 per cent of the Asia-Pacific region’s first quarter revenue of DKK880 million (AU$183.6 m). This figure represented a 58 per cent sales increase compared with the first quarter of 2015, and a 62 per cent increase in local currency.
From January this year, Pandora expanded its product category focus in the Asia-Pacific region to include earrings and, as a result, revenue for this sector increased 70 per cent compared with 2015. Pandora previously took a similar approach with its rings category with positive results.
Winther said Australia’s earring sales had risen in line with the rest of the business. “Locally, we had started to place more emphasis on earrings in 2015, and with our ‘mix and match’ approach, we have seen an overall [sales] increase in earrings, rings and necklaces during 2015. This continued in Q1 of 2016.”
At a global level, Pandora’s revenue increased 34 per cent to DKK4.7 billion (AU$988.9 m) – or 35 per cent in local currency – compared with the first quarter of 2015.
More account closures
While Pandora’s global concept (brand-only) store count continued to rise – the number increased by 405 in the last 12 months – it was noted that within the same period, the company closed the accounts of 1,131 multi-branded stores.
When queried about where Australia fit in with this arguably high figure, Winther said locally, Pandora had closed accounts with a “small number” of multi-branded stores in the past 12 months, although he did not provide an exact figure. He also noted that a “small number” of new multi-branded retail accounts had opened within that time.
“There is no plan to close multi-branded accounts and we will open new accounts when the opportunity arises,” he stated.
Pandora has a presence in more than 100 countries, with approximately 9,000 points of sale. Globally, the company has more than 1,800 concept stores, including more than 115 across Australia and New Zealand.
The full report, including a sales breakdown of each operating region, can be found here.
More reading
Pandora jewellery on hot streak
Sales increase for Pandora, Michael Hill
Michael Hill, Pandora increase sales in 2015
Pandora jewellery sales on the up and up
Pandora profits soar amid structural reshuffle