Pandora posts growth in revenue

Pandora pitt streetDanish jewellery maker, Pandora, has posted growth in revenue and like-for-like sales as it continues looking to optimise its global store network.

The retailer posted 12 per cent growth in group revenue for its second quarter to Kr4.83 billion ($770 million) compared to the previous corresponding period. Pandora also reported 10 per cent growth in like-for-like sales.

Revenue in Asia Pacific increased 35 per cent driven by strong sales performances in Australia and China.

Revenue from Americas increased 1 per cent. Like-for-like sales-out growth in the US was 8 per cent driven by promotions and improved in-store execution.

According to the retailer, its full jewellery brand ambitions are on track with revenue from rings, earrings and necklaces and pendants combined up 23 per cent with the three categories representing 23 per cent of group revenue. Revenue from charms increased 6 per cent and revenue from bracelets increased 19 per cent.

Gross margin was 73.9 per cent in Q2 2017 compared to the 75.3 per cent from the previous corresponding period impacted by headwind from currency.

EBITDA was DKK 1.61 million in Q2 2017, corresponding to an EBITDA margin of 33.4 per cent, down from the previous period’s 37.2 per cent impacted by higher administrative costs.

Anders Colding Friis, CEO of Pandora, said they are pleased with the results for the second quarter.

“Markets like China, Italy, the UK, and Australia performed well, reflecting the significant growth potential for our product offering in both our newer and more developed market,” Friis said. “We also continue to make strides in improving the quality of our global store network and added net 70 new concept stores during the quarter.”

He said the retail environment in the US remains challenging, but they are rolling out a number of initiatives to strengthen their US business even further.

He added the company’s journey to become a full jewellery brand is progressing well. Pandora is trying to branch out from its tried and tested bracelet and charms model into more traditional jewellery.

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