In accounts filed on Companies House, turnover at Pandora’s UK subsidiary fell by 3.2% from £343m to £333 over the last 12 months, while gross profit increased to £107m, compared to £87m in 2017.
Operating profit dipped slightly to £10.5m from £13.2m on the previous 12 months. The brand says this was driven by one-off acquisition related costs.
Overall profit for the financial year plummeted from £72m to £48m.
During the financial year, the company purchased 87 stores from franchisee partners which was in line with the long term strategy of the business to expand the owned and operated network.
The company also opened 3 owned and operated store.
Pandora says it maintained a “solid platform” in 2018, with strong sales as it continues to focus on maintaining the brand image through the sale of high quality and fashionable jewellery.
“As a global brand we are continuing to enhance our products and offerings to market through a number of new initiatives, including strengthening the focus on product innovation and digital campaigns,” says UK managing director, Kate Walsh, in the report.
She says of the future: “The company looks to secure its market share in 2019 as it pursues its strategy of supporting sales performance through owned and operated stores and branded points of sales as opposed to multibrand.”
There are now 241 Pandora concept stores in the UK, down from 264. 126 of these are owned and operated, while 101 are multi-brand accounts.
Pandora is currently working through a forceful programme to ensure it remains relevant in today’s market.
Since this financial year Pandora has undergone a major brand overhaul, which has included a new visual identity and concept store transformation.
The brand has also increased its marketing spend and partnered with global influences to bolster brand awareness. It’s also introduced a new product aimed to encourage the next generation of charm collectors to wear Pandora products.