Pandora Makes Changes to Financial Reporting StructureApril 20, 17
(IDEX Online) – Jewelry giant Pandora is to update its financial reporting structure, effective from the Q1 2017 interim report.
Pandora has decided "to update its reporting structure to ensure that it more appropriately reflects the performance of the underlying business drivers" based on a thorough analysis of its reporting structure, a review of peer reporting, as well as input from external stakeholders, the firm said.
Pandora CFO Peter Vekslund said: "The updates we have made to the financial reporting structure build on the changes we implemented last year and will enable investors and analysts to more appropriately model revenue performance across the Group.
"Importantly, our updated financial reporting structure will provide greater clarity around the development of our owned and operated retail business, which is making a growing contribution to Group revenue. The increasing share from the retail business increases our control with the brand and at the same time we recognize the full retail revenue. Since 2012, revenue from Pandora owned concept stores has increased at an annual average growth rate of approximately 80 percent and we anticipate that from 2017 revenue from Pandora owned concept stores will surpass the reported revenue from franchise concept stores."
The updated financial reporting structure will include the following changes:
- As a supplement to the revenue per region (Americas, EMEA and Asia Pacific), Pandora will report country specific revenue for its seven largest markets by revenue. For 2017, the largest markets are the US, UK, Italy, France, Germany, Australia and China
- Revenue from "Other jewellery" will be divided into two separate categories "Earrings", "Necklaces & Pendants"
- Growth rates across all revenue streams will be reported in Danish kroner and in local currency
- Reporting on the regional revenue per distribution channel and store type will be discontinued
- Reporting of the bracelet sub-category "Moments and Pandora ESSENCE COLLECTION" will be discontinued
- Global like-for-like sales growth for Pandora owned concept stores will replace previously reported global and regional like-for-like sales growth across ownership for all concept stores (Pandora owned, franchise and distributor)
- Like-for-like sales growth for Pandora owned concept stores in the US will be reported
- Like-for-like sales will include PANDORA's eSTOREs
- Additional country specific like-for-like sales will not be reported
- "Shop-in-shops" and "Multibranded stores" will be aggregated to "Other points of sale" and will be reported as one, both in terms of revenue and number of stores
- Pandora will continue to report concept store count per market (markets with 10 or more concept stores), however all other store counts per region will be discontinued
The company said that its financial guidance would be unchanged and the content of the announcement will have no impact on its outlook for 2017, which was communicated to the market in connection with the 2016 Annual Report on February 7.