Pandora Revenue Rises on Strong US Demand
Pandora’s revenue increased in the second quarter as solid US demand and online sales growth outweighed the jeweler’s weak performance in mainland China.
The company’s sales rose by 84% year on year for the period — which ended June 30 — hitting DKK 5.16 billion ($816.1 million), Pandora said Tuesday. In comparison to 2019’s second quarter, sales were up 13%, and online revenue spiked 132%. The jeweler reported a profit of DKK 992 million ($157 million) compared with a loss of DKK 175 million ($27.7 million) in 2020.
In 2020’s second quarter, most of the company’s stores were closed due to the pandemic, impacting sales. Approximately 15% of the Danish jeweler’s retail network remained shut during the same period of 2021, while currently around 8% are still temporarily closed.
“Our strong momentum continued in the second quarter of 2021, and we are pleased that we delivered solid growth compared to 2019,” said Pandora CEO Alexander Lacik. “Performance in the US and online continued to be strong, and in Europe, most of our stores have now reopened.”
However, sales in mainland China were slower, the jeweler noted. Pandora has plans to reposition the brand in the country during the second half of the year.
The jeweler is also assessing the UK debut of Pandora Brilliance, its first line of lab-grown diamonds. It will make a decision later this year on whether to launch the product globally.
Meanwhile, the company has revised its forecast for the year. It now expects organic growth of 16% to 18%, compared to its original prediction of “above 12%,” and an EBIT margin of 23% to 24% versus the “above 22%” it declared at the start of the year.