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Pandora's 4Q Profit +36%, Ring Sales Double

Feb 17, 2015 4:43 PM   By Jeff Miller
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RAPAPORT... Pandora reported that revenue rose 40.4 percent year on year to $607 million (DKK 3.961 billion) in the fourth quarter that ended on December 31. Gross margin as a percentage of sales improved to 71.6 percent compared with 68 percent one year earlier. Total costs increased 33.6 percent to $396 million (DKK 2.58 billion). Profit jumped 36.3 percent to $154 million (DKK 1.007 billion).

The volume of sales increased 22.1 percent and the average price per item rose 15 percent to $22.23 (DKK 145), driven by a greater share of rings sold, which  jumped 112.6 percent to $54 million (DKK 355 million). Sales of Pandora's charms jumped 35.1 percent to $407 million (DKK 2.656 billion), while bracelets improved 18 percent to $71 million (DKK 465 million). Other jewelry items experienced a sales increase of 64.4 percent to $74 million (DKK 485 million).

By region and in local currencies, sales across the Americas jumped 35.2 percent, with an increase of 20 percent for the U.S. and 90.7 percent elsewhere. Revenue across Europe rose 30.8 percent in local currencies, with U.K sales up 28.2 percent, Germany up 3 percent and other countries improving by 40.3 percent. In the Asia-Pacific region, revenue increased 52 percent, driven by a 30.4 percent increase in Australia and an increase of 94.5 percent elsewhere.

During the jeweler's financial year, revenue rose 32.5 percent to $1.8 billion (DKK 11.942 billion). Gross margin improved to 70.5 percent compared with 66.6 percent in 2013. Total costs jumped 24.3 percent to $1.2 billion (DKK 7.87 billion). Profit increased 39.5 percent to $475 million (DKK 3.098 billion). All regions reported strong growth, with the weakest improvement coming from Germany, at 6.3 percent, and the U.S., at 13.1 percent. Revenue for the Americas, however, jumped 20.6 percent overall, led by 46.1 percent improvement outside of the U.S. In Europe, sales rose 38.8 percent, with the U.K. up 36.1 percent and "other" nations driving sales up 48.9 percent. In the Asia-Pacific, where overall sales jumped 58.1 percent, the strongest growth for Pandora appeared across "other" countries at 111.9 percent, while Australia increased 25.6 percent.

Allan Leighton, the CEO of Pandora, said, “The performance in the fourth quarter was our strongest ever and resulted in 2014 being a very successful year for Pandora. Again we increased our topline to record high levels, driven by strong growth across all geographies and product groups. Revenue from charms and bracelets increased more than 25 percent, while revenue from rings increased to more than DKK 1 billion. During the year, we also opened our concept store number 1,400, as part of our continuous focus on increasing the share of revenue from our concept stores.”

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Tags: charms, Jeff Miller, Jewelry, Pandora, profit, revenue, rings
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