Pandora is now a Mickey Mouse operation.
On Aug. 12, the Danish charm manufacturer made two big announcements: It is buying the 27 Pandora stores owned and operated by Hannoush Jewelers for $29 million, and it has signed an agreement with Disney for licensed jewelry.
In a statement, Pandora CEO Allan Leighton said that the Northeast region, where Hannoush is the biggest franchisee, is underperforming the rest of the country by not showing double-digit growth. Pandora will take over the stores later this year, after which they will be upgraded to its new Evolution concept.
The 27 concept stores generated $50 million in sales last year, the company said. It plans to resell five of the stores, all located outside the Northeast, to existing partners, whom it declined to name. Following the purchase from Hannoush, and assuming the five stores are sold, Pandora will directly own and operate 27 concept stores in the United States, out of a total 287 throughout the country.
Hannoush could not be reached for comment.
The company also announced a new “strategic alliance” with The Walt Disney Co., which will run for 10 years and include a line of Disney-themed jewelry. The initial launch features silver and gold charms embossed with Disney characters like Mickey and Minnie Mouse.
Pandora will also get a presence in the company’s U.S. theme parks.
Pandora also announced its financial results for the second quarter. Revenue was DKK 2.54 billion ($455 million), up 31 percent from the previous year. Sales in the America increased by 5 percent, but 11.7 percent in local currency. Sales in Europe increased 65 percent, and Asia Pacific sales increased 57 percent. Net profit for the quarter was DKK 662 million ($118 million).
It also announced that Peter Vekslund, currently senior vice president, head of finance will become chief financial officer, replacing Henrik Holmark on Jan. 1, 2015.Follow JCK on Instagram: @jckmagazine
Follow JCK on Twitter: @jckmagazine
Follow JCK on Facebook: @jckmagazine