Pandora Australia president David Allen says sales results have been strong compared to the significant drop seen by the brand internationally.
Pandora Australia bucks international trend
Posted August 14, 2012 | By Dean Millard • Staff Journalist
Despite a significant drop in international revenue, Pandora’s sales
figures in Australia last quarter indicate the brand is still going
strong.
Global jewellery giant Pandora may have experienced a group revenue decrease of 9.5 per cent in the second quarter of 2012, but its Australian figures indicate Australians are still in love with brand’s charms.
Pandora recorded a decrease in second quarter revenue of 2.2 per cent in Australia, comfortably outperforming the global Pandora figures, which Pandora Australia president David Allen was very pleasing to see.
“Q2 was a very good quarter for us,” Allen said. “We were very pleased with the performance of our seasonal collection launched in March. Q2 was as we wanted it to be, it was stronger than Q1, which means we are on track to where we want it to be.”
He said globally Pandora had performed a pricing review in the aim of realigning the pricing of some of its product across a range of categories to ensure it was competitively priced in the marketplace.
Allen said the solid numbers were expected in Australia for the quarter. He said the brand’s Mother’s Day promotion had proven extremely successful this year, comfortably outperforming the results from last year, which had been a significant contributing factor to the overall positive figures.
“We had a strong Mother’s Day campaign that was very successful for our partners; the results from our partners were very encouraging, certainly stronger than last year. In fact I believe it may have been one of the strongest we have had.”
Allen said what was even more encouraging was the interest that campaign had generated had continued on beyond the promotion itself, with June figures also strong.
“We want to excite our customers and get them into the stores of our partners and possibly get some of them back who might not have been into our stores for a while. What was really exciting was customers were coming in and buying across the range, not just our traditionally strong areas of charms and bracelets, but going on to buy earrings and necklaces as well.”
He said the brand’s campaigns this year had aimed to reach a broad cross section of its prospective customers, which he believed had been successfully achieved.
“There are many generations of Pandora customers, and our campaigns have created a lot of excitement in the business.”
The company expects its 2012 international revenue figures to be slightly down due to a stock balancing campaign that saw Pandora receive $30.5 million in returns in the second quarter, while it also replaced more than $50 million in merchandise. Excluding the effects of that campaign, the company expects to record single digit revenue growth across 2012.
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