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Pandora has recorded its ninth consecutive quarter with a revenue increase of more than 20 per cent
Pandora has recorded its ninth consecutive quarter with a revenue increase of more than 20 per cent

Pandora profits soar amid structural reshuffle

Pandora’s unbroken streak of revenue increases has continued into the second quarter of 2015 as the jewellery brand re-structures its business.

Pandora Australia’s latest financial results showed a 35 per cent rise in overall revenue (29 per cent in local currency) to DKK247 million (AU$49.8 m) compared to the previous corresponding period. This represented the ninth consecutive quarter the Australian operation achieved a revenue increase of more than 20 per cent.

Same-store sales for the second quarter also exceeded an increase of 20 per cent, up 35.7 per cent from 2014.

David Allen, Pandora Australia president
David Allen, Pandora Australia president

“This result is extremely pleasing considering our same-store sales growth was 33 per cent in Q2 2014,” Pandora Australia president David Allen commented.

“The operational performance of our concept stores continues to strengthen, and we are very proud of the dedication that our franchise community and our own store teams continue to place on brand representation and enhancing our consumers’ experience within their stores,” he added.

According to the Pandora financial report, the positive results were supported by strong sales across all product categories, with charms and charm bracelets said to have performed particularly well. The rings category continued to excel, recording a revenue increase of 23 per cent compared to the previous year and accounting for about 15 per cent of Pandora Australia’s overall revenue for the quarter.

Allen also noted that there had been improvement in the performance of the earrings category and that Mother’s Day had been successful again this year, with the special collection dedicated to the occasion selling well.

Fourteen concept stores were opened since the second quarter of 2014, bringing the total number of Australian concept stores to 96 at the end of the period. “We see continued opportunities for additional stores,” Allen added.

Global perspective

Globally, Pandora recorded a significant 41.4 per cent rise (25.8 per cent in local currency) in total revenue to DKK3.6 billion (AU$725.4 m).

Double-digit revenue increases were achieved across all regions: 44.1 per cent to DKK552 million (AU$111.3 m) in the Asia-Pacific; 43.8 per cent to DKK1.6 billion (AU$318.1 m) in the Americas; and 38 per cent to DKK1.5 billion (AU$296 m) in Europe.

Anders Colding Friis, Pandora CEO
Anders Colding Friis, Pandora CEO

“Growth was driven by a combination of network expansion and strong like-for-like [same-store sales] growth, supported by revenue-enhancing initiatives such as the continued rollout of our e-store and our collaboration with Disney,” Pandora CEO Anders Colding Friis commented.

The company rolled out its first ‘e-store’ – an e-commerce platform – in the US in April 2015. This initiative will soon be available locally, with the Australian e-store scheduled to launch in September this year.

“We see this as a critical component of our ability to enhance the brand experience for our consumer,” Allen said.

Structural shifts

The financial results follow news that the Danish company will undergo a number of organisational changes, with the Australian operation playing a key role.

As previously reported by Jeweller, Allen will move to Copenhagen, Denmark in September to head Pandora’s newly created EMEA region (Europe, Middle East, Africa).

Pandora Australia’s current vice president of sales and business services, Brien Winther, will replace Allen as president of the Australian and New Zealand operation. All changes will come into effect on 21 September 2015.

In addition, Pandora recently acquired distribution rights in Singapore, Macau and the Philippines. The company signed an agreement earlier this month to obtain Norbreeze Group’s Pandora store network within these regions on 1 January 2016.

The moves are further examples of what appears to be a string of ongoing changes for Pandora; earlier this year in February, Pandora Australia announced it would cease dealing with the three jewellery buying groups and in March, it also began rolling out a new brand-only store design aimed at improving the customer experience.

More reading
Pandora jewellery on hot streak
Pandora hits the road, sales up 38 per cent
Pandora Australia president David Allen moves on
Pandora jewellery drops buying groups
Pandora introduces new-look jewellery stores

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