Pandora’s Revenues Rise—But U.S. Sales Fall

Pandora’s revenues rose 12 percent in the company’s second quarter—but fell 2 percent in dollar terms in the U.S., due to a “challenging” retail environment.

That’s an improvement over the first quarter in the United States, when revenues dropped 10 percent.

CEO Anders Colding Friis said Pandora has recently introduced a number of new products in the United States, all of which were well-received. The company is also relying heavily on new promotions, a response to what it considers a promotional environment in the United States.

On the positive side, comp sales at Pandora’s U.S. concept stores rose an impressive 8 percent—driven, the company said, by better execution. Sales at its U.S. e-store were also strong.

However, the wholesale market in the United States was “a lot more challenging,” Friis said, and sales were weak at multibrand stores. Multibrand stores still represent about a quarter of U.S. revenue.

U.S. sales of charms and bracelets were “slightly negative for the quarter,” according to Friis. But he added, “Clearly we are building our new categories in the U.S.… It’s not something we are really worried about.”

Pandora aims to build 100 new U.S. concept stores in the next three to five years.

Overall, the company’s global revenue hit DKK 4.825 billion ($762 million) this quarter.

 

JCK News Director


  • Shiv C

    I doubt they could be profitable at all. They have lost the marketing edge completely. Customers associate the Pandora brand with beads. The bead business is on a so yesterday fashion trend.

    Not to mention the negative publicity from all the store that use to carry Pandora. Not much more brand visibility.

    I hope there is a good plan or else it will be another one shot wonder.

    On the bright side the malls will have a new tenant for a short while.

  • Valerie White

    Pandora really needs to come down on the price of the GOLD collection. I have 7 filled silver bracelets. Really would love the Gold but it costs way to much.