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Pandora Anticipates Revenue Growth of 35%
Jan 17, 2014 2:13 PM
By Jeff Miller
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RAPAPORT...
Pandora's preliminary revenue projections for the fourth quarter indicated that sales jumped 30 percent year on year to $509 million (DKK 2.8 billion). The jewelry chain estimated that revenue for 2013 rose more than 35 percent to $1.63 billion (DKK 9 billion) and it anticipates a gross margin of 67 percent compared with 66.6 percent in 2012. Pandora closed 2012 with no improvement in revenue compared with the previous year and it also reported that earnings plunged 41 percent to $211 million. Previous guidance from Pandora for 2013 anticipated revenue of about $1.6 billion.
Pandora concluded that Christmas season sales were stronger than expected and it was able to open 10 more ''Concept'' store formats than originally planned to accommodate consumer interest in its jewelry products.
Pandora's CEO, Allan Leighton, said,
“Following a strong finish to the year, with better than
expected
Christmas sales, we will end 2013 with around 35 percent revenue growth and a substantial increase in
profitability compared to 2012.”
Same-store sales from Pandora's Concept stores in the fourth quarter rose 5.1 percent at U.S. locations, surged 17.9 percent in the U.K., improved 5.7 percent in Germany and jumped 25.5 percent in Australia. Capital expenses were $18 million less than expected at $55 million, but that figure excluded a one-time payment of $35 million (DKK 190 million) for the intellectual property rights of Trollbeads A/S as well as the
investment
related to the acquisition of the distributor in Brazil.
Pandora expects to release its full financial report on February 18.
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Tags:
Jeff Miller, Jewelry, Pandora, revenue
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