RAPAPORT... Pandora Jewelry reported that revenue surged 35.4 percent year on year to $1.66 billion (DKK 9.01 billion) for fiscal year that ended on December 31. Cost of sales also rose 35.4 percent and reached $555 million (DKK 3.011 billion), while sales, distribution and marketing expenses increased 15 percent to $441 million (DKK 2.397 billion) and administration expenses rose 5.9 percent to $170 million (DKK 921 million). Pandora's profit during 2013 jumped 84.7 percent to $409 million (DKK 2.22 billion).
During the fourth quarter, which included the Christmas season, group revenue improved 29.8 percent year on year $520 million (DKK 2.822 billion), led by strong growth in all regions. Sales in local currency jumped 20 percent for the Americas, where same-store sales rose 5.1 percent and revenue improved 45.3 percent in Europe, with same-store sales jumping by 17.9 percent. Revenue surged 59.5 percent in the Asia Pacific and comparable-store sales increased 25.5 percent. Pandora's gross margin during the fourth quarter improved to 68 percent compared with 64.5 percent one year earlier. The average price per item sold dipped 4.5 percent to $23.21 (DKK 126) as the company changed the product mix. Profit jumped 75.5 percent to $136 million (DKK 739 million) during the fourth quarter.
Pandora anticipates that revenue in 2014 will reach or exceed $1.8 billion (DKK 10 billion), driven by strong increases in comparable-store sales and market expansion, which includes adding 175 new concept stores, according to the company's guidance.