Pandora’s U.S. revenue rose 13.2 percent in dollar terms for the first quarter of 2015—even as it slashed 105 underperforming retailers from its network.
For the first quarter (ended March 31), sales hit 1.209 billion Danish krone ($180 million). In Danish krone terms, the increase was 38 percent.
But the company also announced it was cutting 105 “underpeforming unbranded” retailers, almost all located in the United States.
The cuts are part “of the continued focus on the branded part of the network,” the company said.
71 of those were “silver” retailers, which carry a medium assortment, and 34 were “white” and travel retailers, which carry a more limited selection.
U.S. growth was spurred by a larger network and strong comps, as well as sales of its Disney charms. However, “unfavorable” shipment timing hurt sales.
Comps at its U.S. concept stores jumped 8.9 percent, but Northeast sales fell. It recently acquired those stores from Hannoush.
Its U.S. e-commerce site is in “very early days” so it was too soon to give traffic or sales numbers, said new CEO Anders Colding Friis in a conference call following the release of its financial results.
Overall sales for the first quarter totaled 3.547 billion Danish krone ($534 million)—a 36.8 percent increase and a 22.3 percent in local currency. Net profit for the quarter was 383 million Danish krone ($57.6 million), a sharp 46 percent decrease from the proceeding year, due to the company’s settlement with Danish tax authorities.Follow JCK on Instagram: @jckmagazine
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