CollectionsApr 26, 2024
Piece of the Week: Jacquie Aiche’s Starry Galaxy NecklaceThe necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
FinancialsMay 10, 2017
Pandora Sees US Sales Fall in Q1
They were down 10 percent due to a “difficult” retail environment, particularly in the country’s malls.
An image from the global ad campaign Pandora launched this spring celebrating women who “do.” The Danish bead and jewelry brand saw sales rise globally in the first quarter but fall in the United States.
Copenhagen, Denmark--Pandora saw its U.S. sales decline for the second quarter in a row due to what it described as a “difficult” retail environment, particularly in the country’s malls.
The Copenhagen-based bead brand reported Tuesday that revenue in the United States was down 7 percent (10 percent in local currency) year-over-year in the first quarter.
Excluding the effects of the closing of 600 other points of sale (non-concept stores) and a large, one-off shipment to Jared the Galleria of Jewelry in Q1 2016, U.S. sales would have been flat.
The U.S. results were a drag on the performance of the Americas region, which recorded a 5 percent (9 percent in local currency) drop in sales to $247.4 million in the first quarter.
In addition to the slow mall traffic in the U.S., the company--which is focusing its marketing and promotional efforts on earrings, rings and necklaces--said introducing fewer new bracelets and charms for Valentine’s Day impacted sales.
Under its new reporting structure, Pandora no longer breaks out the number of “multi-branded stores”--a group that included the independent jewelers who carry the brand but don’t have shop-in-shops--in each market.
This metric has been a particular point of interest for independents in the U.S., many of whom have been cut out of Pandora’s distribution network in recent years.
Instead, Pandora now gives a count of concept stores in its largest markets and a global tally of what it now classifies under “other points of sale,” which includes multi-branded stores as well as shop-in-shops.
According to the figures released Tuesday, Pandora had 349 concept stores in the U.S. as of the end of the first quarter, compared with 328 a year ago, a 6 percent increase.
Globally, its other points of sale have shrunk by 16 percent in that same time frame, from 7,174 to 5,993.
The company also said it acquired 33 franchise concept stores in Q1, including 18 in the United States. It said revenue in company-owned and -operated concept stores is, on average, nearly 2.5 times higher than the revenue from a comparable concept store owned by a franchisee.
Globally, Pandora saw first quarter sales increase 9 percent (8 percent in local currency) year-over-year to $754 million. Revenue from Pandora-owned retail stores now represents 38 percent of total revenue.
A strong performance in the Asia-Pacific region and strength in ring, earring and necklace sales helped to offset the brand’s
Editors' Picks
Sponsored by
relatively weak performance in the United States and the slowdown in charm and bracelet sales.
Gross margin was 73.3 percent, down from 74.6 percent in the first quarter 2016, while EBITDA increased 7 percent to $274.6 million.
“We are very pleased with the performance in our important growth markets, with Italy, France and China continuing to show strong sales growth,” CEO Anders Colding Friis said in a company statement. “However, the retail climate in the U.S. remains difficult, which was reflected in our performance.”
During the first quarter, Pandora opened a second factory in Thailand and announced its expansion into India through a partnership with Pan India Charms & Jewellery Private Limited (Pan India).
The company’s guidance for 2017 remains unchanged. The Denmark-based bead and jewelry brand expects full-year sales to range from $3.36 billion to $3.50 billion, up from $2.92 billion last year.
Pandora plans to open 275 new concept stores in 2017, 25 percent (about 69 stores) of which will be located in the Americas.
Of those 275 stores opening globally, about half will be owned by Pandora, while the remaining 50 percent will be split equally between franchisees and third-party distributors.
Gross margin was 73.3 percent, down from 74.6 percent in the first quarter 2016, while EBITDA increased 7 percent to $274.6 million.
“We are very pleased with the performance in our important growth markets, with Italy, France and China continuing to show strong sales growth,” CEO Anders Colding Friis said in a company statement. “However, the retail climate in the U.S. remains difficult, which was reflected in our performance.”
During the first quarter, Pandora opened a second factory in Thailand and announced its expansion into India through a partnership with Pan India Charms & Jewellery Private Limited (Pan India).
The company’s guidance for 2017 remains unchanged. The Denmark-based bead and jewelry brand expects full-year sales to range from $3.36 billion to $3.50 billion, up from $2.92 billion last year.
Pandora plans to open 275 new concept stores in 2017, 25 percent (about 69 stores) of which will be located in the Americas.
Of those 275 stores opening globally, about half will be owned by Pandora, while the remaining 50 percent will be split equally between franchisees and third-party distributors.
More on Financials
The Latest
Events & AwardsApr 26, 2024
AGS Conclave and GIA Symposium Are ConvergingThe two organizations will host a joint event, “Converge,” in September 2025.
SourcingApr 26, 2024
Anglo American Reportedly Shopping De Beers as BHP Eyes Anglo Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
Weekly QuizApr 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition WatchThe Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to JaredThe three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
CrimeApr 24, 2024
Jewelry Crime Declines Significantly, But Dollar Losses Remain High A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
CollectionsApr 24, 2024
Pippa Small Announces ‘Venus’ CollectionInspired by the Roman goddess of love, the designer looked to the sea for her new collection.
Events & AwardsApr 24, 2024
JCK Industry Fund Announces 2024 Grant RecipientsThe selected nine organizations have outlined their plans for the funds.
SourcingApr 24, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
WatchesApr 24, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s DayEmmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
GradingApr 23, 2024
GIA Has a New Book About William RuserRuser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati PrinslooThe “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024 Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’The overhaul includes a new logo and enhanced digital marketplace.
MajorsApr 22, 2024
Signet Raises Nearly $9M for St. Jude Children’s Research HospitalThe money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed FormFrom now through mid-May, GIA will be offering the reports at a 50 percent discount.
