Pandora’s global revenue increased to DKK5.1 billion (AU$1.7 b) in the three months ended 30 September, a 13 per cent improvement when compared with the third quarter of 2016. This positive trend was mirrored in the Australian market, which reported a 20 per cent increase to DKK329 million (AU$69 m).
However, despite the positive sales increase, profits in this period slipped 3 per cent to DKK1.3 billion (AU$273.5 m), a decrease of DKK45 million (AU$9.4 m) compared with the same quarter last year.
Pandora’s revenue jump was mainly due to strong performance in the Europe, Middle East and Africa region (EMEA), where sales increased 15 per cent to DKK2.5 billion (AU$526 million), and Asia-Pacific, which recorded a 26 per cent bump to DKK1.1 billion (AU$231 million).
Meanwhile, in the Americas, revenue only increased 1 per cent to DKK1.5 billion (AU$315 million), with sales negatively impacted by hurricanes and a tough retail environment.
Commenting on the results in the company’s Q3 2017 interim report, Pandora CEO Anders Colding Friis said, “The results in the third quarter were in-line with our expectations, with the underlying development showing positives as well as negatives.
“Most of our major growth markets – Germany, Italy, Australia and China – continued to show strong performance with double-digit growth rates, whereas the retail environment in the US continued to be a challenge.”
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.
Michael Hill earnings
Michael Hill International (MHI) also released its figures for the third quarter of 2017, reporting a revenue increase of 8 per cent across the entire group.
Michael Hill, which is MHI’s main revenue stream, generated $126 million during the period, representing a 7 per cent increase. MHI’s Emma & Roe business – which was launched in April 2014 and has 30 stores throughout Australia and New Zealand – increased 27 per cent.
At home and in New Zealand, Michael Hill’s sales increased 6 per cent to $73 million and $26 million, respectively.
In Canada, the company reported a 22 per cent increase to $27.2 million. However, sales lagged in the US as the company continued to grapple with the region.
A financial report signed by MHI CEO Phil Taylor provided these comments: “Our US business continued to struggle and finished 9 per cent down for the quarter.
“A focus remains on this segment as we continue to search for the right formula for success in this large jewellery market and management are monitoring the segment’s progress closely.”
As of November 2017, MHI had a total of 343 Michael Hill-branded stores worldwide, with 169 in Australia, 53 in New Zealand, 82 in Canada and 39 in the US.
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