After a year of decidedly mixed financial reports, Danish charm manufacturer Pandora posted third-quarter results that showed both sales and profits rising.
The group’s revenue increased by 14 percent in the third quarter of 2012 to DKK $1.79 billion ($308 million) compared with DKK 1.5 billion ($269 million). Net profit increased by 11.4 percent to DKK 380 million ($65 million).
The strategy we have initiated is on track,” CEO Björn Gulden tells JCK. “That doesn’t mean we are at the finish line.”
In the United States, revenue climbed 2.6 percent in dollars, the company said. Comp sales at U.S. concept stores rose 4.5 percent.
“We are positively surprised at how strong the business in the U.S. has been,” Gulden says. “The market is tough but we think the Pandora brand is strong.”
The bead maker announced it has “largely concluded” its stock balancing campaign. In the third quarter, the company took in returns of discontinued products with a wholesale value of DKK 86 million ($14.7 million) and replaced DKK 127 million ($21.7 million).
“The campaign is nearly complete,” Gulden says. “Hopefully we will never have to do it again.”
Other highlights of the company’s balance sheet for the third quarter:
- Revenue from charms increased by 28.8 percent compared with last year’s third quarter. Revenue from silver and gold charms bracelets increased by 42.6 percent. The two categories represented 87.5 percent of company revenue.
- Revenue from rings increased by 37.5 percent and represented 7.4 percent of total revenue in the third quarter. Other jewelry decreased by 66.4 percent.