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E-commerce more than doubled for the jewellery brand in 2020, though overall sales fell due to the COVID-19 pandemic.
E-commerce more than doubled for the jewellery brand in 2020, though overall sales fell due to the COVID-19 pandemic.

Pandora sales fall during 2020; outlook optimistic for 2021

Pandora Jewelry has recorded a decline in revenue for the third year in a row, but management is cautiously optimistic its multi-year revitalisation strategy will produce positive financial results in the near future.

Pandora’s recently released annual report reveals the company’s revenue fell to DKK19.01 billion ($AU4.03 billion) in 2020 – a decline of 13 per cent compared to the previous year. Profits also fell by almost a third, from DKK2.95 billion ($AU620 million) in 2019 to DKK1.94 billion ($AU410 million) in 2020.

Alexander Lacik, CEO Pandora Jewelry
Alexander Lacik, CEO Pandora Jewelry
“Despite these significant disruptions, we managed to navigate the business to a very strong performance, leading to market share gains in many markets"
Alexander Lacik, Pandora Jewelry

While 2020’s first wave of lockdowns led the company to a low point in April, it was the restrictions put in place across Europe at the end of 2020 that particularly affected its results for the year, with Pandora forced to close a fifth of its store network.

However, the company did note that losses in the UK were partially offset by consumers reprioritising spending from travel to discretionary goods.

The US remained the company’s biggest market, posting DKK4.51 billion ($AU960 million) in revenue. With the exception of slight increases in the UK, Germany and Australia, the company recorded falls in revenue across the rest of its global operations.

“Despite these significant disruptions, we managed to navigate the business to a very strong performance, leading to market share gains in many markets,” Alexander Lacik, CEO Pandora, said in a statement.

“We continue to invest strongly in building the brand’s desirability, digital capabilities and operational excellence, all of which will be key foundations as we gradually move from transformation to growth mode.”

Notably, Lacik told the BBC in November that the company had elected to pay all its employees in full throughout 2020, despite the pandemic forcing temporary store closures for weeks at a time.

Pandora’s performance in Australia remained virtually unchanged from the previous year, with the company reporting a small increase in revenue to DKK1.1 billion ($AU237 million).

David Allen, former general manager of Pandora Jewelry Europe, Middle East and Africa (EMEA), returned to Australia mid-year to lead the company’s new Pacific division, replacing Phil McNutt.

Pandora also reported significant improvements in terms of online retail. Online sales more than doubled compared to 2019, and in Q2 2020, revenue from online sales surpassed physical retail sales for the first time in the company’s history.

Pandora plans to support this trend through its new Copenhagen Digital hub, launched in July; a remote shopping assistant, virtual try-ons and appointment booking systems have already been introduced.

Last year also marked the end of Pandora’s Programme NOW initiative, a sweeping revitalisation strategy designed to end years of declining revenue. After a brand re-launch, a consolidation of its product line and significant cost reductions, the company expects its efforts will yield results as the COVID-19 pandemic subsides.

Pandora also noted that its Star Wars collection, produced in collaboration with Lucasfilm, was particularly successful. The 12-piece capsule collection accounted for 4 per cent of the company’s total revenue in its launch month, with charms featuring The Child – also known as Grogu or ‘Baby Yoda’ – from TV series The Mandalorian selling more than 100,000 pieces in December.

 

More Reading:
Pandora Jewellery relaunch begins to pay dividends
Pandora reports strong sales; closes one-fifth of stores due to COVID-19
Pandora through the pandemic: a turnaround in the making? 











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