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Pandora’s 3Q Revenue +37%, Ring Sales +79%

Nov 11, 2015 11:30 AM   By Rapaport News
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RAPAPORT... Jewelry retailer Pandora’s revenue jumped 37 percent to $563.7 million (DKK 3.9 billion) year on year in the third quarter that ended September 30. The increase was 28 percent in local currency, the Danish group said in a statement November 10.

Gross profit rose 45 percent to $416.9 million and net profit increased 39 percent to $145 million. The gross margin increased by four percentage points to 74 percent.

Ring sales jumped 79 percent to $88.7 million, while sales of charms increased 36 percent to $349.9 million. Silver and gold charm bracelets saw a 9 percent increased to $60.1 million.

The company closed 116 unbranded stores in the Americas during the third quarter, mostly in the US, it said in the statement. The overall number of points of sale in the Americas was cut by 212, or 6 percent, to 3,124, compared with the third quarter last year. Globally, the number of points of sale dropped by 308 to 9,533.

The company said it is continuing to develop its branded store network and opened 19 new ‘concept’ stores in the Americas, which offer many Pandora items according to a theme. Revenue from Pandora’s owned and operated stores, including its ‘eSTOREs’, advanced 145 percent to $146.8 million and contributed around 26 percent of overall sales, compared to around 15 percent last year. The rise in retail revenue was partly like-for-like growth and partly due to the addition of 275 new owned and operated stores in the past year.

Revenue from European operations advanced 41 percent to $270.8 million. U.S. revenue grew 26 percent to $152.3. Overall revenue in the Americas region, including the U.S., was $205.9 million. Revenue from Asia Pacific soared 75 percent but still represents only 15 percent of global sales, at $86.9 million.

Chief executive officer Anders Colding Friis said in the statement: “The strong top-line development has continued in the third quarter of the year, and again all regions contributed to the growth. Europe and Asia Pacific in particular did well, with both established as well as less developed markets continuing the positive momentum.

“Growth in the US was slightly softer than previous quarters primarily due to a change in promotion strategy in the region to further enhance our brand.”

Revenue for the nine months to September increased 39 percent to $1.6 billion and net profit rose 10 percent to $331 million.

The company expects full-year revenue above $2.3 billion, consistent with the group’s previous guidance in August.
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