U.S. sales of Pandora charms and jewelry increased 13.9 percent in the company’s third quarter, primarily driven by strong West Coast sales, it announced in its latest financial results.
Sales at its U.S. concept stores for the quarter grew 3.7 percent. The company said that sales rose in every region but the Northeast, where they dipped into “negative territory,” leading the company to take over distribution from franchisee Hannoush.
Marketing expenditures will increase substantially in the fourth quarter as the company’s line of Disney-theme charms comes on stream.
“I see the U.S. as a growth market, and a big growth market, so we should get behind it,” CEO Allan Leighton said in a conference call following the release of its financial results.
He added that it was still too early to gauge consumer reaction to the Disney line, but added: “It’s probably the best reception from our franchisees we have ever gotten on any launch we have done. U.S. and Disney is a big deal.”
Overall group revenue for the third quarter totaled 2.8 billion DKK ($474 million), a 26.2 percent increase over the prior year. Charm revenue increased 22 percent; charm bracelet revenue, 28 percent; ring revenue, 98 percent; and sales from other jewelry, 4.5 percent.
Rings are “now becoming a substantial business,” Leighton said, though he said that charms and bracelets remain the backbone of the company, accounting for more than three-quarters of its revenue.