Pandora's global revenue took a tumble last year
Pandora’s global revenue drops; Michael Hill up
By Aaron Weinman
Pandora Jewelry saw its worldwide revenue drop while NZ-based Michael Hill's revenue continues to grow.
While Pandora’s global revenue decreased in fiscal 2011, its US sales held up which indicated a positive outlook for the US jewellery market. Pandora CEO, Marcello Bottoli, said the macro environment is better than Western Europe and the US was holding up better than other market.
The company’s group revenue dropped to 6.658 billion Danish kroner compared to 2010’s 6.666 Danish kroner. Despite the drop in Europe and its Asia Pacific market, revenue in the Americas increased 7.9 per cent for 2011.
Interestingly, Bottoli told jckonline.com sales in its US-based concept stores increased 16 per cent in the fourth quarter of 2011 and said Pandora was committed to multi-branded retailers in the Americas.
“There are pockets where we have significant untapped potential,” Bottoli said. “We are seeing very positive trends in the US.”
Bottoli added that the company would be decreasing prices on select items in a one-off, time-limited global stock balancing campaign, allowing retailers to exchange non-turning stock for the company’s best sellers.
“For six months we have reviewed everything in our business,” Bottoli said. “The strategy is solid, the execution is where we haven’t been performing where we should have.”
A new CEO is set to replace Bottoli this month and according to Bottoli, his replacement has experience as the head of two, as yet, un-named US footwear chains.
Meanwhile Michael Hill announced an 11.5 per cent increase in revenue during the second half of 2011 with a profit of $26 million.
The company’s US store’s increased same store sales by 22.3 per cent while US revenue reached $5.27 million for the second half.
In addition, its NZ revenue increased by 8.5 per cent to NZD$60.9 million while its Australian sector increased 4.4 per cent to AUD$147 million.
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Posted March 06, 2012