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Pandora Raises Expectations after Strong 1Q

May 10, 2016 10:30 AM   By Rapaport News
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RAPAPORT... Pandora increased its revenue guidance for the year as sales surged in the first quarter off the back of strength in Europe and Asia Pacific

Revenue in the three months to March 31 jumped 34 percent to $724.7 million and profit soared more than threefold to $199.7 million, the Denmark-based jeweler reported.

Following stronger first-quarter results, Pandora forecast revenue of more than $3.06 billion in 2016, implying an advance of at least 19 percent from a year ago. Previous sales guidance was above $2.9 billion.

Revenue from Europe, the Middle East and Africa, the company’s largest region by sales, surged 47 percent as sales soared about 70 percent in both Italy and France. Asia-Pacific revenue grew 58 percent driven by development of the business in China and the positive effect of converting distributor revenue to retail revenue.

The jeweler added net 405 concept stores globally in the past year including 50 new stores in January to March. The expansion of the concept-store network comes after Pandora closed 1,422 unbranded stores last year. The company said it plans to add more than 275 new concept stores in 2016 compared with an earlier estimate of more than 250.

Growth this year is expected to be driven equally by higher sales from existing stores and an expansion of the store network, the company said. It had previously anticipated the expansion would contribute two thirds of the growth.
Tags: Jewelry, Pandora, Rapaport News, retail sales
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