Pandora increases revenue in Q3 financial report

HIGHLY COMMENDED: Pandora for Rose

Pandora has announced its Q3 2015 financial results today (Nov 10) with revenue increased by 37.5% driven by all geographic regions.

Group revenue in the third quarter of 2015 was DKK 3,911 million (£372,933,156), an increase of 37.5% or 28.0% in local currency, compared with Q3 2014.

The Asia Pacific region increased the most (74.8%), followed by Europe with a 40.7% increase and then the Americas with 22.7%.

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Revenue from concept stores increased by 49.3% and corresponded to 60.6% of the total revenue.

Anders Colding Friis, chief executive of Pandora, states: The strong top-line development has continued in the third quarter of the year, and again all regions contributed to the growth. Europe and Asia Pacific in particular did well, with both established as well as less developed markets continuing the positive momentum. Growth in the US was slightly softer than previous quarters primarily due to a change in promotion strategy in the region to further enhance our brand.”

For the UK specifically the brand’s new collections performed extremely well, including Pandora Rose which launched in Q2 and has been very well received.

Despite the success of other product categories – rings, for example now accounts for around 20% of UK revenue –  charms still continued to perform extremely well as the company continues to develop other categories to provide a full jewellery offering.

Peter A Andersen, president of Pandora Western Europe who is responsible for the UK says: “During the third quarter, we have seen the ongoing growth of the brand within the UK, a key market for Pandora, and one in which we have successfully increased sales and revenue figures. Despite the fact that charms are still our most popular product, the growth of other categories such as rings, necklaces and earrings is particularly pleasing, and at the end of Q3 rings account for around 20% of UK revenue – an increase of more than 100% compared to the same period last year.

“This quarter, we opened our 179th concept store in the UK, which in seven years of existence is something we are very proud of.  The all-important Christmas season is just around the corner and we look towards it positively – it is a very exciting time for the brand – both globally and within the UK as we continue to focus on developing our business, opening new concept stores and delivering long term growth through the popularity of the product.”

Elsewhere in the financial report it states that the gross margin increased to 74.0% in Q3 2015, compared with 70.3% in Q3 2014 and EBITDA increased by 42.5% to DKK 1,454 million (£138,646,077) in Q3 2015, corresponding to an EBITDA margin of 37.2%, compared with 35.9% in Q3 2014.

Net profit for the quarter was DKK 1,006 million (£95,927,066), compared to a net profit of DKK 725 million (£69,132,328) in Q3 2014.

The financial guidance for the full year 2015 for revenue and EBITDA margin is maintained and Pandora continues to expect revenue of above DKK 16 billion and an EBITDA margin around 37%.

Assuming current exchange rates, Pandora expects a full year tailwind effect from currencies on revenue of around 10% compared to 2014. This compares to a tailwind of around 12% anticipated in August 2015 in connection with the announcement of the Q2 2015 report.


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