Pandora has released its interim financial report for Q2 2016 revealing positive revenue growth in the UK of 7% compared with the same quarter last year.
The company reports that group revenue in Q2 2016 reached DKK 4,327 million, (£497m), an increase of 20% (35% increase in local currency), compared with Q2 2015. European revenue increased by 28%, with the geographic areas of the Americas and Asia Pacific rising 5% and 43% respectively. The UK contributed to around 25% of revenue in EMEA.
Revenue from concept stores increased by 39% and corresponded to 63% of the total revenue. Q2 saw Pandora continue its unrelenting growth and open an additional seven new concept stores, taking its total UK portfolio up to 209.
Concept store like-for-like sales increased 7%, driven by positive growth in EMEA and Asia Pacific, partially offset by -1% in Americas (US like-for-like sales increased 2%).
The company’s gross margin profits increased to 75.3% in Q2 2016, compared with 71.5% in Q2 2015.
EBITDA increased by 23% to DKK 1,609 million (£185m) in Q2 2016, corresponding to an EBITDA margin of 37.2%, compared with 36.4% in Q2 2015
Overall, net profit for the quarter was DKK 1,221 million (£140m), compared with a net profit of DKK 910 million (£104m) in Q2 2015. Q1 2015 was negatively impacted by an additional tax expense of DKK 364 million as well as a higher financial costs.
Western Europe president for Pandora Peter Andersen – who has been responsible for Pandora’s growth in the UK – will be stepping down from the business this year, but under his leadership has grown both the brands presence on Britain’s high streets and overall sales revenue – making the UK, Pandora’s largest market in Europe.
Q3 and Q4 will continue to see the brand grow its offering with the global launch of Pandora Rose on 1st September. The collection has proved very successful in the UK and as a result will be launched globally in the Autumn.
Anderson comment: “These are another set of fantastic results which we are all incredibly proud of – to be a presence in every major UK town and city is a phenomenal achievement. After eight years at Pandora, it has been both challenging and immensely rewarding, watching the brand grow and resonate so well with women of all ages.
“I am delighted with the progress the brand has made in the UK, in particular in such a competitive industry and on what is widely considered a tough high street to crack.”