Financials

Pandora’s Lab-Grown Diamond Line Coming to the US

FinancialsNov 03, 2021

Pandora’s Lab-Grown Diamond Line Coming to the US

The announcement coincided with the release of Pandora’s third-quarter results, with the brand posting strong growth in the U.S.

The “Pandora Brilliance” lab-grown diamond line will roll out in the United States and other key markets in 2022. Pandora announced the expansion during the release of its third quarter results.
Copenhagen, Denmark—Pandora posted strong third-quarter revenue growth as U.S. sales stayed strong, and once again upped its financial guidance for the year ahead.

The company also announced plans to begin the worldwide roll out of its lab-grown diamond line, “Pandora Brilliance,” in 2022 after a successful test run in the U.K.

The line includes rings, bangles, necklaces and earrings, each featuring a lab-grown diamond hand-set in sterling silver or 14-karat yellow or white gold. The collection’s motif is a take on the infinity symbol.

The Danish jewelry company’s third quarter revenue rose 16 percent to 4.73 billion Danish kroner ($736.2 million), compared with 4.07 billion Danish kroner ($633.7 million) in the third quarter last year.

It reported organic growth of 14 percent compared with 2020, while its sell-out growth (sales in Pandora-owned and -operated stores) of 5 percent year-over-year fell short of analyst expectations of 14 percent.

For the first nine months of the fiscal year, Pandora’s revenue is up 29 percent year-over-year.

“We are very pleased with the strong sell-out growth in the third quarter. [The] U.S., our largest market, continued the outstanding performance, yet again ahead of market growth,” said CEO Alexander Lacik in a press release about the results.

By sales channel, Pandora-owned retail stores, including the online store, brought in 3.09 billion Danish kroner ($482 million) in the third quarter, up 11 percent from the previous year.

During the third quarter 2021, around 5 percent of Pandora’s physical stores were temporarily closed due to COVID-19 restrictions. In the U.S, 1 percent of stores were closed in the quarter.

The company operated 2,616 concept stores as of the third quarter, 14 fewer when compared with the third quarter 2020. 

It plans to close 50 of these stores, at the high end of its prior guidance of 25 to 50 closures.

 Related stories will be right here … 

Wholesale sales in the third quarter were up 30 percent to 1.45 billion Danish kroner ($225.9 million).

Online sales in the quarter were up 2 percent compared with 2020, and up 94 percent when compared to pre-pandemic 2019.

Pandora’s “click-and-collect” program—its buy online, pickup in store service—accounted for 15 percent of U.S. online sales.

The service rolled out to France, Italy, Germany and Australia in the third quarter.

In the U.S, Pandora’s largest market, sell-out growth was strong in the third quarter, up 29 percent compared with 2020 and up 59 percent compared with 2019. Pandora attributed the growth partly to a boost from the stimulus packages.

The company has cut down on its promotional activity, noting that 98 percent of revenue in the region came from full-price sales.

Sales in Asia-Pacific continued to struggle amid COVID-19 restrictions while key European markets rebounded, including the U.K., Italy, and Germany, as stores began to reopen.

Looking ahead, Pandora upped its financial guidance for the fiscal year again.

It expects organic revenue growth to range between 18 to 20 percent, topping its previous estimate of 16 to 18 percent growth.

Guidance for EBIT margin rose to 24-24.5 percent from 23-24 percent.

The updated guidance is dependent upon there being “no other material COVID-19 restrictions implemented,” said Pandora in its presentation.

The new guidance also presumes that COVID-19 will not have a major negative impact on its production and supply chain.

Forecasting an uptick in demand for its jewelry, the company is building up its manufacturing capabilities, planning to build a new facility in Vietnam, and will expand the production capacity of its two facilities in Thailand.

The company plans to expand its manufacturing capacity by around 60 percent, or 80 million pieces of jewelry annually.

Editor's Note: A previous headline for this story said "Pandora Brilliance" would launch in the U.S. in 2022. The rollout will begin in 2022, with launch dates for individual countries to be announced later.

Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

Supplier BulletinJun 30, 2022
Here’s Where You’ll Find The Best Online Jewelry Auctions

Sponsored by HiBid

CrimeJun 30, 2022
What JSA’s Annual Report Tells Us About Jewelry Crime in 2021

Plus, JSA President John Kennedy talks about the trajectory of industry crime over the last 20 years.

CrimeJun 30, 2022
Smash-and-Grab Robbers Hit Booth at TEFAF: Watch the Video

The fair was evacuated temporarily Tuesday after four suspects smashed a showcase and stole jewelry from British jeweler Symbolic & Chase.

Brought to you by
Preparing for Proposal Season with High-Quality, A.I.-Graded Natural Diamonds

Rare & Forever is helping to create an enjoyable diamond buying experience for the millions of newly-engaged couples.

Events & AwardsJun 30, 2022
Nominations Are Open for Gem Awards 2023

The 21st annual awards show and gala will take place in New York City next March.

Weekly QuizJun 23, 2022
This Week’s Quiz
Test your knowledge of the latest jewelry news with this quick test.
Take the Quiz
Events & AwardsJun 30, 2022
Registration Open for JIS Fall in Miami

The jewelry trade show is scheduled for Sept. 30-Oct. 3 at the Miami Beach Convention Center.

AuctionsJun 29, 2022
Bonhams Expands Again with Purchase of Paris Auction House

It is the fifth acquisition under the ownership of private equity firm Epiris, which bought Bonhams in 2018.

Brought to you by
Discover The Extraordinary Italian Jewelry In Las Vegas!

Experience all the Italian Jewelry market has to offer in Las Vegas.

MajorsJun 29, 2022
Zales Has a New Diamond Cut

The “Celebration Infinite” diamond has more than three times the number of facets in a traditional brilliant-cut diamond, the retailer said.

WatchesJun 29, 2022
Bulova Introduces New Frank Sinatra Watches

The brand again partnered with the Frank Sinatra School of the Arts High School to celebrate the launch of the “Summer Wind” watches.

SurveysJun 29, 2022
U.S. Platinum Jewelry Demand Starts 2022 on a Strong Note

Retail ounce sales were up 23 percent year-over-year in Q1, according to the recent Platinum Jewellery Business Review.

Events & AwardsJun 29, 2022
Registration Is Now Open for the HardRock Summit 2022

Scheduled for Sept. 8-11, the event will comprise more than 310,000 square feet of show floor, exhibits, and education space.

ColumnistsJun 28, 2022
The PR Adviser: Why Should Someone Buy From You?

If you’re having trouble answering this question, columnist Lilian Raji can help you get a started with a few fill-in-the-blank statements.

IndependentsJun 28, 2022
This Jeweler Is Celebrating 40 Years With 40 Days of Giveaways

Continental Diamond in Minneapolis is awarding a total of $25,000 in prizes via daily sweepstakes.

CollectionsJun 28, 2022
Melissa Kaye’s New Collection Doubles the Color

“Lenox” marks the designer’s foray into bespoke jewels and large colored gemstones.

Events & AwardsJun 28, 2022
Second AGS Virtual Education Conference Is All About Negotiation Skills

“Confluence” is happening in August.

MajorsJun 27, 2022
George Holmes, Longtime Head Editor of JCK Magazine, Dies at 93

He first took a job at then Philadelphia-based Jewelers’ Circular-Keystone in 1963 and retired in 1996.

MajorsJun 27, 2022
Mayors, Analog:Shift Team Up With Goop

The lifestyle platform will stock fine jewelry and watches from the retailers on its website and in store.

CrimeJun 27, 2022
JSA Warns of ‘Pandemic’ of Distraction Thefts Nationwide

It cited two recent cases in California, plus incidents in Florida, Kansas, and Illinois.

IndependentsJun 27, 2022
Lewis Jewelers Set to Open New Ann Arbor Store This Summer

The 10,000-square-foot location allows for expanded collections from design partners while continuing custom design and other services.

CollectionsJun 27, 2022
This Designer Has Found a New Way to Bring Gemstones to Life

Svetlana Lazar’s “Wishing Well” collection utilizes an innovative component to mimic the movement of water beneath them.

Supplier BulletinJun 24, 2022
AGTA GemFair™ Denver is the Place to Be in September!

Sponsored by AGTA

Recorded WebinarsJun 24, 2022
Vegas Jewelry Recap: The Editors Weigh In

Watch the webinar in which National Jeweler’s editors talk about jewelry market week trends and their predictions for the rest of 2022.

MajorsJun 24, 2022
Banter by Piercing Pagoda Celebrates Pride with ‘SayGay’ Necklace

All proceeds up to $25,000 will benefit the It Gets Better Project, a nonprofit that supports LGBTQ+ youth.

CollectionsJun 24, 2022
Piece of the Week: Marie Lichtenberg’s Hidden Message Locket

It’s a reminder that life is best lived with discretion.

TechnologyJun 24, 2022
Cloud-Based POS Software Jewel360 Launches for Jewelry Retailers

The end-to-end software allows for real-time control over all sales, inventory, repairs, customer communications, and marketing.

EditorsJun 23, 2022
Antique Show Observations From a First-Time Attendee

Associate Editor Lenore Fedow shares her impressions of the Las Vegas Antique Jewelry & Watch Show and a few of her favorite finds.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy