Pandora defied the Brexit fall-out by posting a 16% rise in UK sales during the third quarter of this year – but the impact of the depreciation of the British pound weighed heavily on its books as it revealed a decrease of 3% in reported revenue.
The devaluation of the pound remains an issue for Danish jewellery brand given that a quarter of its EMEA sales come from the UK, but the sheer volume of demand for its jewellery will continue to please management.
A spokesperson for the Danish-listed brand said the growth in UK orders was evidence of its “continued momentum” across the UK after an “extremely busy” three months.
EMEA sales reached DKK2.2 billion (£265m) during the most recent three-month period, making the UK business worth around DKK550m (£66m) in quarterly sales by Professional Jeweller’s calculations.
Pandora attributed the UK growth to its ever-burgeoning store network. It has opened 38 new concept stores since the same period last year, taking the number of concept stores up to 217. The launch of its Pandora Rose collection during the summer also had consumers reaching for their wallets.
Overall worldwide revenue at the firm shot up 18% to DKK 4.6 billion (£555m) in the third quarter, while EBITDA increased 27% to DKK 1,842 million (£217m).
Commenting on the global results, Anders Colding Friis, CEO of Pandora, stated: “Following a strong first half of 2016, Pandora continued the positive momentum into Q3, with strong growth in particularly Southern Europe and Asia Pacific. Additionally, the US continued to deliver solid growth supported by positive like-for-like. The increase was driven by double digit growth across all product categories supported by an attractive and relevant product offering. Finally, we improved profitability and increased the EBITDA-margin to 39.9% driven by operational leverage as well as lower realised commodity prices.”