Pandora UK revenue increases 22% in Q3

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Pandora has released its interim financial report for Q3 2017 revealing positive revenue growth in the UK of 22% compared with the same quarter last year.

Revenue growth in the UK was mainly driven by the expansion of the concept store network, sell-in of the Disney collection ahead of the October launch and timing of shipments.

During the quarter, the existing physical network developed negatively, partially offset by a good performance in the eStore.

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Globally, the company reports that group revenue in Q2 2017 reached DKK 5,194 million (£614m) in local currency, an increase of 16% compared with Q2 2016. EMEA revenue increased by 15%, with growth driven mainly by positive performances in Italy and Germany.

In total, revenue from Pandora-owned retail across the globe increased by 35%, while like-for-like growth for Pandora owned concept stores was 5%.

Gross margin was 74.2% in Q3 2017.

The Q3 reports also reveals that Pandora remains on track to become a “full jewellery” brand, with combined revenue from rings, earrings and necklaces & Pendants up 21%, the three categories representing 27% of Group revenue

Revenue from charms increased by 9%, while bracelets recorded a 13% growth.

Growth across all categories was supported by the launch of the Autumn collection in late August and included 20 additional products that were fast tracked to fulfil an identified opportunity with Pandora’s consumers, reflecting the significance of the jewellery giant’s new manufacturing capabilities and improved production lead times.

Furthermore, the new collection included 32 Pandora Rose products (out of a total of 128), which was very well received and revenue from Pandora Rose tripled compared to the same quarter last year. Finally, the Disney collection was launched for consumers in early October in EMEA with a positive initial reception.

Commenting on the results, Pandora’s chief executive officer, Anders Colding Friis, comments: “The results in the third quarter were in-line with our expectations, with the underlying development showing positives as well as negatives. Most of our major growth markets – Germany, Italy, Australia and China – continued to show strong performance with double-digit growth rates, whereas the retail environment in the US, combined with currency headwind from the US Dollar, continued to be a challenge.”

The jewellery giant’s financial guidance for FY 2017 is unchanged, even though full year revenue is expected in the low end of the earlier guided range of DKK 23-24 billion (£2-3bn), this is mainly due to currency headwinds and impact from hurricanes.

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