Pandora’s U.S. sales took a tumble in the first quarter of 2018, with sales falling 8 percent in dollars and 20 percent in Danish kroner (DKK) over the prior year.
Overall U.S. revenue for the first quarter totaled 1.018 billion DKK.
The biggest bright spot in the United States was the company’s eStore, which fueled 9 percent comp growth at Pandora’s U.S. owned-and-operated stores. However, sales at the company’s U.S. physical concept stores, including franchise stores, were down.
The company blamed the poor U.S. results on a “lack of newness” in the company’s assortments.
“Clearly the U.S. market is probably the [one] market in the world where the interest in newness is [highest],” said CEO Anders Colding Friis on a conference call following the release of its financial results.
He said the company has changed the leadership at its U.S. division and will now introduce new product on a regular basis.
“We expect that to have a positive impact,” he said. “So far, so good. The reception of the new product in the U.S. is very good.”
He said that while the company is not moving away from charms and bracelets, it is doing more to promote other categories—in particular, rings. He said his company’s ring sales now roughly equal charm sales in the United States.
In response to an analyst question, Friis said, “We have no plans to go into engagement and wedding rings. But we do see consumers who are using our products for engagements and weddings, and that is encouraging.”
Pandora had 380 concept stores in the United States in the first quarter of 2018, up from 349 in the first quarter of 2017.
Overall, the company’s revenue sales totaled 5.11 billion DKK in the first quarter, up 6 percent in local currency, but down 1 percent in Danish kroner. Chinese sales proved an unexpected challenge because of sales from the gray market.
Image courtesy of Pandora