Pandora posted record revenue for the second quarter of 2021, with U.S. sales soaring 63% over the same period in 2019.
The company attributed its “unusually” strong U.S. performance to the stimulus checks included in the American Rescue Plan.
“We do expect that there will be a natural correction once the fiscal stimulus is removed,” CEO Alexander Lacik said on an earnings call following the results’ release, according to a Seeking Alpha transcript. But, he added, “We have strong indications that Pandora has been building market share.”
Pandora also took over 22 U.S. franchise stores in the first half of the year, and 7 more U.S. franchise stores in July.
The company’s much-ballyhooed lab-grown diamond line, called Brilliance, was doing well during its initial launch in the United Kingdom, Lacik said, but he didn’t give more specifics.
The brand is “a baby at this stage in terms of launch,” he added. “And I think the critical question we are asking, not just ourselves, but the consumer, is: Does this value equation, which is very different from [our traditional] charms and bracelets proposition, does it hold with our consumer base?”
Pandora needs six months to do a proper evaluation, he said, and will then decide whether to roll out the new line globally. But “so far, so good,” Lacik said.
Overall, the Copenhagen, Denmark–based company posted revenue of 5.2 billion krone (approximately $819 million) for the quarter, an 84% jump over its COVID-19-afflicted second quarter of 2020, and a 13% rise over the non-COVID-19 second quarter of 2019.
Online sales accounted for 24% of its second-quarter revenue, a 132% increase over the same period in 2019. However, online revenue dropped from last year’s second quarter, as consumers returned to stores.
An average of 15% of Pandora’s physical stores were temporarily closed during the quarter due to COVID-19. Currently, 8% of its stores are temporarily closed.
Lacik said Pandora’s performance in China remains weak, but the brand is taking steps to reposition itself there.
In response to an analyst question, Lacik praised Luciano Rodembusch, the former Tiffany exec who now serves as general manager of Pandora’s North American operations.
“He’s got an extensive blue-chip background,” he said. “He’s got an international background, [so he] understands retailing at a wider scale. And not least, he’s been very successful in the last few years heading up the Tiffany business in the U.S.”
Pandora’s full financial report can be seen here.
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