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US, Asia Weakness Dents Pandora Sales

Feb 8, 2018 7:51 AM   By Rapaport News
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RAPAPORT... Pandora sales lagged behind expectations in 2017, as the jeweler noted a decrease in traffic to its stores in Asia and difficult US market conditions.

Revenue rose 12% to $3.74 billion (DKK 22.78 billion) for the year, shy of the $3.78 billion to $3.94 billion (DKK 23 billion to DKK 24 billion) that it forecast. At constant exchange rates, revenue grew 15%, the Danish seller of charm bracelets, rings and earrings reported Tuesday.

In the Americas, revenue climbed 4% to $1.17 billion (DKK 7.11 billion), with the US market continuing to prove difficult for the jeweler.

“The retail environment in the US remained challenging and the physical network, including franchisee stores, continued to experience negative like-for-like performance,” the company said.

Asia Pacific saw a sales hike of 25% to $795 million (DKK 4.84 billion), although growth slowed to just 5% in the fourth quarter. That end-of-year weakness was largely due to a 3% decrease in Australia — Pandora’s largest market in the region — which experienced a decline in the number of Chinese tourists.

Total profit for 2017 dropped 4% over the previous year, to $947.9 million (DKK 5.77 billion).

Sales of necklaces and pendants showed the strongest improvement in 2017, surging 43% to $216.4 million (DKK 1.32 billion), followed by earrings, which jumped 35% to $233 million (DKK 1.42 billion). Sales of charms grew 8% to $2.12 billion (DKK 12.92 billion).

Pandora expects revenue to increase by 7% to 10% in local currencies this year, as it continues to grow the company-owned part of the store network and launch new products.
Tags: jewelery, Pandora, profit, Rapaport News, Rapaport NewsCharm bracelets
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