In the first quarter ended 31 March, Pandora’s global revenue increased 9 per cent to DKK5.2 billion (AU$1 b), an 8 per cent increase in local currency. Asia-Pacific sales increased 44 per cent – 40 per cent in local currency – to DKK1.2 billion (AU$238 million) and represented 25 per cent of Pandora’s total sales.
Meanwhile, sales in Australia increased 27 per cent – 18 per cent in local currency – to DKK360 million (AU$71.5 m).
Pandora Australia and New Zealand managing director Mikael Kruse Jensen told Jeweller the local division was “very happy” with the result.
“We have growth coming from strong store operation and have added 11 concept stores to our retail network over the past 12 months,” Kruse Jensen said, adding, “The highest growth is coming from our earrings and necklace categories, which demonstrates our full assortment appeal to our customers.”
The latest results come on the heels of an announcement that the company would update its financial reporting structure, effective from the 2017 first quarter.
Reporting structure
According to Kruse Jensen, the decision to amend its reporting was to provide greater business transparency.
Adding to this was Pandora CFO Peter Vekslund, who said in a company statement in April that the move aligned with the group’s changing structure – namely, the rise in the number of company-owned and operated stores as opposed to other forms of distribution.
“Since 2012, revenue from Pandora-owned concept stores has increased at an annual average growth rate of approximately 80 per cent, and we anticipate that from 2017 revenue from Pandora-owned concept stores will surpass the reported revenue from franchise concept stores,” Vekslund stated.
Pandora will now also disclose the total revenue figure for its top seven markets. As of the 2017 first quarter, Pandora’s top sales performers were the US, UK, Italy, France, Germany, Australia and China.
Revenue from its ‘other jewellery’ category will also be broken into two categories: earrings and necklaces and pendants.
Global context
In the first quarter, the revenue breakdown for other regions was as follows: a 5 per cent increase to DKK2.2 billion (AU$435 million) in Europe, Middle East and Africa [EMEA]; and a decrease of 5 per cent in the Americas to DKK1.7 billion (AU$336 million). In local currency, this represented a 9 per cent increase and a 9 per cent decrease, respectively.
In terms of product categories, rings, earrings and necklaces and pendants primarily drove revenue.
Global sales of rings rose 42 per cent to DKK753 million (AU$149 m), earrings increased 57 per cent to DKK285 million (AU$56 m) and sales from necklaces and pendants rose 56 per cent to DKK272 million (AU$54 m). Charm sales for the first quarter increased 2 per cent to DKK2.9 billion (AU$576 million).
Pandora is headquartered in Copenhagen, Denmark and has a presence in more than 100 countries with approximately 8,100 points of sale. According to the company, Pandora has more than 2,100 brand-only stores globally with a total of 130 in Australia and New Zealand.
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