Pandora reported what it called its “strongest quarter ever” in the United States, with revenues jumping 20 percent as the company opened new stores and launched its much-anticipated Disney collection.
The charm maker’s U.S. revenue for the fourth quarter of 2014 grew 20 percent in local currency terms to 1.09 billion krone, or about $170 million.
In a conference call following the report’s release, CEO Allan Leighton credited the strong numbers in the United States to better execution, increased marketing support, an upgrade in its network of concept stores, as well as the Disney line, which is available only in theme parks and concept stores.
“This is Disney,” Leighton said. “It’s one of the biggest brands in the world. We thought it would strike a chord with U.S. consumers, and that is what we’ve seen.”
Comps at its U.S. concept stores grew 4.7 percent in the fourth quarter, with high-single-digit jumps in every area except the Northeast, where sales improved but were still down, it said. Disappointing results from those stores led Pandora to acquire 22 stores from former franchisee Hannoush. (It officially acquired 27 stores but sold five stores outside the Northeast to a local franchisee.)
Over 2014, Pandora opened 38 new concept stores in the United States, for a total of 315 concept stores.
Pandora’s annual report also singled out growth in the ring category; it said U.S. ring revenue had tripled since 2013.
“We still see rings a big opportunity in the U.S.,” Leighton said. “I think you will see quite a lot of focus on rings in the U.S. this year.”
Overall company results for the year were equally strong, hitting 11.9 billion krone ($1.8 billion), a 32.5 percent jump from the prior year. Profits rose to 3.1 billion krone ($480 million), a 39.5 percent increase.
It predicts sales will hit 14 billion krone ($2.1 billion) next year.