Pandora beats 2013 expectations with £1bn revenue

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UK concept store sales up 17.9% in Q4 driven by holiday sales.

Pandora exceeded its financial expectations for 2013 according to a statement released today, topping its forecast revenue of DKK 8.6 billion (£959m) by reaching DKK 9 billion (£1bn) for the full year, thank to better holiday sales.

Its preliminary revenue for Q4 2013 was about DKK 2.8 billion (£312m), corresponding to an increase of approximately 30% (approximately 36% in local currency) compared to Q4 2012. EBITDA-margin for the quarter was around 33%.

Based on the preliminary results for 2013, Pandora’s EBITDA-margin was around 32% against the previously guided forecast of about 30%.

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Pandora said its revenue exceeded expectations due to better holiday sales in the fourth quarter as well as more than expected concept store openings towards the end of the year.

The brand opened a net total of 205 concept stores in 2013, versus previously expected 195 openings. Revenue in the fourth quarter increased on all geographies despite headwind from foreign exchange rates, with all regions contributing with strong growth.

Pandora has also paid all of its global employees, other than its vice presidents, a £1,000 bonus this month as a thank you for all their hard work and commitment in 2013.

Pandora chief executive Allan Leighton said: "Following a strong finish to the year, with better than expected Christmas sales, we will end 2013 with around 35% revenue growth and a substantial increase in profitability compared to 2012."

Like-for-like sales in Pandora concept stores in Q4 2013 continued to be good with US sales-out up 5.1%, UK up 17.9%, Germany up 5.7% and Australia up 25.5% compared to Q4 2012.

CAPEX for the full year was around DKK 300 million (£33m) versus guidance of approximately DKK 400 million (£44m).

The lower than expected CAPEX for the year was due to a deferral of cost related to expansion of the production capacity in Thailand, into 2014. The CAPEX figure excludes the one-off payment of DKK 190 million (£21m) related to the purchase of IP rights from Trollbeads A/S as well as the investment related to the acquisition of the distributor in Brazil.

The brand’s annual report for 2013 will be released on 18 February 2014, where executive management will elaborate further on the results.

 

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