Pandora Posts Strong Q2 as US Sales Surge
Plus, the company shares how its lab-grown diamond line, “Pandora Brilliance,” performed.
The Danish jewelry company’s second quarter revenue rose 79 percent to 5.16 billion Danish kroner ($815.7 million), compared with 2.88 billion Danish kroner ($455.1 million) in the second quarter last year.
“Our strong momentum continued in the second quarter of 2021, and we are pleased that we delivered solid growth compared to 2019,” said CEO Alexander Lacik in a press release about the results.
“Performance in the U.S. and online continued to be strong, and in Europe most of our stores have now reopened.”
The company is continuing to test its lab-grown diamond line, “Pandora Brilliance,” in the U.K. and will make a decision on a global launch in late 2021.
The collection generated 18 million Danish Kroner ($2.85 million) in the second quarter, accounting for 3 percent of U.K. revenue.
By sales channel, Pandora-owned retail stores, including the online store, brought in 3.39 billion Danish kroner ($537.9 million) in the second quarter, up 37 percent from the previous year.
During the second quarter 2021, around 15 percent of Pandora’s physical stores were temporarily closed due to COVID-19 restrictions. In the U.S., that number was about 6 percent.
The company operated 2,630 concept stores as of the second quarter, 84 fewer when compared with the second quarter 2020.
Wholesale sales in the second quarter were nearly five times higher than the previous year, up 375 percent to 1.59 billion Danish kroner ($253 million).
Online sales in the quarter slipped 16 percent compared with 2020, but nearly tripled when compared to pre-pandemic 2019, up 179 percent year-over-year.
Pandora’s “click-and-collect” program—its buy online, pickup in store service—gained traction in the U.S., accounting for 13 percent of U.S. online sales.
Pandora has invested in driving online traffic, including email marketing and trying out new platforms in the U.S. like TikTok and Twitch, a live-streaming video service usually reserved for video games.
Around one-third of all Google searches for branded jewelry is for Pandora, said the company.
In the U.S., Pandora’s largest market accounting for 34 percent of total revenue, sales were strong in the second quarter, boosted by the stimulus packages.
The U.S. posted organic growth of 179 percent, with revenue totaling 1.77 billion Danish kroner ($280.2 million).
Looking ahead, Pandora once again upped its financial guidance for the fiscal year.
It expects organic revenue growth to range between 16 and 18 percent, topping its previous estimate of more than 12 percent growth.
Guidance for EBIT margin rose to 23-24 percent from above 22 percent.
The updated guidance is dependent upon only 5 percent of stores being temporarily closed during the second half of 2021, compared with prior guidance of 5-10 percent.
Currently, about 8 percent of Pandora’s stores are temporarily closed or “severely impacted” due to COVID-19.
The new guidance also presumes that COVID-19 will not have a major negative impact on its production and supply chain.
Pandora has completed its two-year “Programme Now” turnaround plan, which aimed to stabilize its topline, increase brand relevance and access, and reduce costs.
It is in the middle of a new strategy, dubbed “Phoenix,” that is focused on sustainable growth. Details of the plan will be shared during its Capital Markets Day in September.
The Latest
The report shows that couples are searching for vintage and antique rings, gold jewelry, pearls, and colorful pieces.
He’s remembered as a “font of passion,” leaving behind a legacy of dedication to his craft and community.
The first one will take place next month during the Jewelers of Louisiana’s and Mississippi Jewelers Association’s conventions.
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
The redesigned boutique features interactive displays and a workshop space for hands-on learning about watchmaking.
There is a willingness to comply with new government-mandated regulations, with an insistence that they should be practical and realistic.
A combination of factors is driving growth in the industry despite the precipitous drop in prices across the board.
Ho Brothers offers scalable solutions for the future of custom jewelry.
The zone’s modernization will enhance and increase India’s jewelry manufacturing capabilities while aiding small and mid-sized businesses.
By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Optimism about the current state of the economy was offset by anxiety around inflation and the political environment.
The former WJA executive director is MFM’s new managing director.
DDG encourages retailers to educate customers on the positive impact of purchasing natural diamonds.
Highlighting the most iconic Tiffany collections, it’s inspired by the company’s late window designer, Gene Moore.
Jen Cullen Williams and Duvall O’Steen explore how jewelers can save time and money by using AI to analyze engagement and create content.
The retailer previously turned down an $8.4 billion offer in 2018.
The Florida store’s owner Miguel Gonzalez is retiring.
The lab stresses the importance of accurate identification, as the difference in price is “substantial.”
The brand also plans to expand its retail footprint from 138 to 200 stores over the next three years.
One is reserved for a NAJA member, the other for a non-member.
Longtime employees Carie Lehrke and Megan Mattice have received promotions.
Three guests joined National Jeweler and Jewelers of America to discuss trending time periods, spotting reproductions, and more.
Chris Clipper and Robert Lepere join the company with 50 years of combined experience.
The trendy, metallic earrings wink at classic spring colors.
JSA said a man and woman pulled the safe out of an Oakland jewelry store but couldn’t quite get it into their van.
The miner’s March auction generated $19 million.
Helen McCluskey will succeed H. Todd Stitzer when he meets his 12-year term limit in June.