National Jeweler Network

Financial Reporting

Pandora reports double-digit rise in US revenue

February 20, 2014

Copenhagen--Bead brand Pandora reported Tuesday that its U.S. sales rose 24 percent in 2013 (28 percent in local currency) to $589.7 million, driven by an increasing demand for newer products and an improved store network.

Revenue in the Americas was up 26 percent in 2013 (30 percent in local currency), increasing from $610.4 million in 2012 to $766 million last year.

Pandora notes that the number of branded stores in the Americas region increased by 181 in 2013 to a total of 1,753 stores.

For the overall company, group revenue for the full year was $1.66 billion, a 35 percent increase from the reported revenue of $1.23 billion in 2012.

Reported net profit rose 85 percent to $409.1 million in 2013, compared with a net profit of $221.5 million in 2012. Gross margin was 67 percent in 2013 and unchanged compared with the year earlier.

“2013 has been a strong year for Pandora,” CEO Allan Leighton said. “We recorded our highest revenue ever and increased our profitability. The results were driven by progress across all major regions. Our global store network was improved and the full year effect of our new drop structure delivered with seven strong product collections.”

A few key events marked the year for Pandora, including Bjørn Gulden stepping down as CEO on July 1 to head sportswear company Puma. Leighton replaced him and Marcello Bottoli succeeded Leighton as chairman of the board of directors.

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In March, Pandora reached an agreement with rival Trollbeads A/S to acquire the intellectual property rights for Trollbeads’ glass charm designs. The latter previously had been granting Pandora the IP rights related to the design of its glass charm but, under the new agreement, Pandora made a one-time payment of DKK 190 million ($33.3 million at the time) to Trollbeads for all the IP rights.

Additionally, Pandora announced in late August that it had gained distribution rights for its jewelry in Brazil by acquiring 100 percent of the share capital of Brazil Comércio e Importação Ltda., the previous distributor of Pandora jewelry in the country.

Looking ahead to the future, Pandora said it expects continued growth in 2014, with revenue expected to increase to more than $1.84 billion, driven by growth in same-store sales, expansion of the global store network and further expansion in the company’s new markets.