US ‘continued to perform well’ for Pandora
Copenhagen, Denmark--Sales in the Americas rose slightly in the fourth quarter and full year 2012 for Pandora, though the company’s profits worldwide dipped sharply due to the stock balancing campaign launched a year ago.
The Danish bead and jewelry company announced Tuesday that revenue in the Americas was up 6 percent (2 percent at constant exchange rates) year-over-year in the fourth quarter, from $154.6 million to $164.4 million.
In the United States, fourth-quarter sales increased 5 percent (0.8 percent in local currency). Same-store sales at the company’s concept stores rose 7 percent year-over-year. Outside of the U.S. market, Pandora reported a 10 percent increase in sales, with Canada as the largest contributor.
For the full year, the company reported that its sales in the Americas increased 5 percent (a 3 percent decline in local currency).
Globally, revenue was essentially flat in 2012, totaling $1.17 billion. Net profit fell 41 percent, from $356.8 million to $210.5 million. Gross margin declined from 73 percent to 66.6 percent.
In the fourth quarter, sales of rings rose most sharply, jumping 18 percent. Sales of other jewelry were down 0.5 percent, while charm sales rose 15 percent and sales of silver and gold charm bracelets declined 0.7 percent.
The average sales price per item decreased slightly in the quarter, from $24 to $23.
“2012 was a year of re-setting the business,” CEO Bjørn Gulden said. “We started the year with two major initiatives: realigning the products and prices and improving the quality of stock with our retailers by replacing slow-moving items with best sellers. After a difficult first half where we worked hard on implementing these initiatives, it is encouraging to see the positive developments in Q3 and Q4 2012.”
He added that the U.S. market continued to perform well in 2012.
Pandora expects its 2013 sales to reach $1.26 billion, topping last year’s total. The company plans to open about 150 concept stores during the year.