|
RAPAPORT... Pandora Jewelry reported that its revenue increased 31.7 percent year on year to $456 million (DKK 2.544 billion) in the second quarter that ended on June 30. Gross margin as a percentage of sales improved to 70.7 percent compared with 66 percent one year earlier. The brand's profit surged 53.6 percent to $119 million (DKK 662 million). By region and local currencies, revenue rose 8.3 percent in the U.S., while it surged 22.7 percent across other countries in the Americas. Sales in the U.K. jumped 53.2 percent and they increased 12.6 percent in Germany, while all other areas of Europe reported an 82.1 percent improvement. Sales rose 38.4 percent in Australia and 157.4 percent for the rest of the Asia-Pacific division. Pandora's CEO, Allan Leighton, said, “We have had another exceptionally strong quarter with positive progress across all regions. The growth was primarily driven by our new markets in Europe and Asia as well as by the U.K. The U.S. is generally performing well except for the Northeast where our plan to refresh the network has begun. All product categories had good growth and rings particularly so, with revenue from that category increasing 200 percent in the quarter.” Other categories such silver and gold charm bracelets, and other jewelry, had relatively small increases, Pandora reported. Charms, the top-selling item for the brand, recorded sales of $305.7 million in the quarter, up from $251.8 million one year ago, while silver and gold charm bracelets recorded sales of $47 million, up from $36 million. Pandora signed an agreement to acquire 27 concept stores from U.S. jeweler and franchisee Hannoush for $29 million. This transaction includes physical store locations, inventory and other assets. This is part of the process to refresh the network in Northeastern U.S., Leighton said. In other news, Peter Vekslund, the current senior vice president and head of finance for Pandora will succeed Henrik Holmark as the group's chief financial officer on January 1, 2015. Holmark will be stepping down from his role to join Dr. Martens Airwair Group Ltd.
|