Although Pandora announced in August that worldwide charm sales had plunged, many jewelers say they haven’t seen any declines.
“Sales have been good for us,” says William Sites, owner of Sites Jewelers in Nashville, Tenn. “We get new customers in all the time. It is still a big traffic driver.”
Miguel Gonzalez, owner of Miami Lakes Jewelers in Miami Lakes, Fla., says his Pandora sales are up 100 percent over last year. “Even during the worst months, we’re so far ahead of last year with Pandora, it’s not even funny.”
Michael Barnes, CEO of Signet Jewelers, told analysts during an Aug. 25 conference call that Pandora “continues to be a very strong business for us at Jared,” scoring double-digit comps.
However, Robert Smith, owner of E.M. Smith Jewelers in Chillicothe, Ohio, says while Pandora is still his No. 1 brand, he has noticed a drop. “Pandora sales have been down for several months,” he says. “We have sold a ton of Pandora over the last five years, but I think you reach a saturation point.”
Pandora North America president John White says the industry needs to keep things in perspective, emphasizing that the Danish charm company’s sales in North America remain 30 percent up, with U.S. sales growing 12 percent.
“Those are not the expectations we had,” says White. “But it’s still solid growth.… This is more a resetting of expectations in the market than a brand that fails to resonate with consumers.”
White says there will be no further price increases for the remainder of the year. He also pledges that the company will work “more intimately” with retailers to develop the right product.