Pandora has released its interim financial report for Q1 2016 revealing positive revenue growth in the UK of 30% compared with the same quarter last year.
The company reports that group revenue in Q1 2016 reached DKK 4,740 million, (£502m), an increase of 34% (35% increase in local currency), compared with Q1 2015. European revenue increased by 47%, with the geographic areas of the Americas and Asia Pacific rising 13% and 58% respectively. The UK contributed to around 30% of revenue in EMEA.
Revenue from concept stores increased by 61% and corresponded to 60% of the total revenue. Since Q1 2015, Pandora has opened 38 new concept stores in the UK, bringing the total count in Q1 2016 to 198. However, the brand has opened two more since then, recently reaching the milestone of 200 stores.
The company’s gross margin profits increased to 74.6% in Q1 2016, compared with 71.1% in Q1 2015.
EBITDA increased by 35% to DKK 1,760 million (£186m) in Q1 2016, corresponding to an EBITDA margin of 37.1%, compared with 36.8% in Q1 2015
Overall, net profit for the quarter was DKK 1,306 million (£138m), compared with a net profit of DKK 383 million (£40m) in Q1 2015. Q1 2015 was negatively impacted by an additional tax expense of DKK 364 million as well as a higher financial costs
In other areas free cash flow increased 37% to DKK 1,356 million (£143m) in Q1 2016 compared with DKK 990 million (£104m) in Q1 2015.
In the UK, rings now accounts for 20% of turnover, showing that the brand is more than charms – despite the fact that the charm bracelet continues to be the most popular product. Earrings have also been a growth-driver, while new collections, including Pandora Spring which launched earlier this year, have also been performing extremely well.
Online growth now accounts for 10% of UK revenue.
President of Pandora UK, Peter A Andersen, comments: “2016 has begun incredibly positively and we are thrilled to have just opened our 200th store in the UK – which represents another milestone for the brand.
“We continually work hard at making our brand relevant to all our very loyal customers – and are proud that we can do that across generations with product that transcends age. Our strategy continues to be focused on providing the very best product at affordable prices – and for the focus to not purely be charms – but other jewellery categories too. Success in this quarter has proven that this strategy is indeed paying off – as rings have increased by more than 31% for the whole EMEA region, compared with Q1 2015.”
Andersen concludes: “We hope that 2016 will continue to be another fantastic year of trading and we are excited by what the future holds. This year will not only see us open new production facilities in Chiang Mai to meet product demand, but we will also continue to open new stores – both globally and in the UK – thus reaching areas where we don’t yet have a presence.”