In the second quarter ended 30 June 2017, Australian sales increased 16 per cent – 12 per cent in local currency – to DKK368 million (AU$74 m) compared to the second quarter of 2016.
Meanwhile, Pandora’s global revenue increased 12 per cent to DKK4.8 billion (AU$966 million) compared to the same period last year, and Asia-Pacific sales increased 35 per cent – 34 per cent in local currency – to DKK1.1 billion (AU$221 million).
Despite the global sales increase, the figure was reportedly below the DKK4.9 billion (AU$987 million) average estimate of analysts polled by Reuters. Net profit was down 10 per cent at DKK1.1 billion (AU$221 million) for the period, which was largely attributed to poor trading in the US.
Commenting on results in the company’s financial statement, Pandora CEO Anders Colding Friis said, “The retail environment in the US remains challenging; however, we are rolling out a number of initiatives to strengthen business even further. We are pleased with the results for the second quarter delivering double-digit top-line growth and continued healthy profitability.
“Our journey to become a full jewellery brand is progressing well, with revenue from rings, earrings and necklaces and pendants increasing by 23 per cent.”
Refreshed strategies
While Pandora is still widely known for its charm and bracelet sales, Colding Frijs’ comments indicated a focus on strengthening the performance of other categories.
According to the company statement, this objective would be fulfilled by various initiatives, such as expanding its Disney collections through the Europe, Middle East and Africa (EMEA) region.
The statement also noted the company would introduce four new concepts during the next three years and had reduced product development time to allow for a quicker reaction to market trends.
The revenue breakdown for the remaining regions was as follows: a 10 per cent increase to DKK2.1 billion (AU$422 million) in EMEA (13 per cent increase in local currency), while the Americas achieved an increase of 1 per cent (or a 1 per cent decrease in local currency) to DKK1.6 billion (AU$322 million).
Pandora is headquartered in Copenhagen, Denmark and has a presence in more than 100 countries with approximately 7,700 points of sale. According to the company, Pandora has more than 2,200 brand-only stores globally with a total of 135 in Australia and New Zealand.
More reading
Pandora maintains momentum with ‘strong’ Australian performance
Australia bags Pandora’s top jewellery store
Pandora Australia continues sales momentum
Pandora Australia managing director to be transferred
Sales increase for Pandora, Michael Hill
Pandora jewellery sales yet to plateau
Pandora targets new jewellery category amid strong results