Pandora Reports 9% Revenue Growth In Q1, America Down

(IDEX Online) – Pandora reported that group revenue in Q1 of this year increased by 9 percent (8 percent in local currency) on the year to DKK 5.159 billion ($760 million), in line with the firm's expectations of single digit growth.

Revenue from Pandora owned retail outlets increased 39 percent (39 percent in local currency) and represented 38 percent of group revenue. Like-for-like sales growth for Pandora owned concept stores was 8 percent.

Revenue from EMEA (Europe, Middle East and Africa) increased 5 percent (9 percent in local currency) driven by a good performance in France and Italy, but was impacted by the depreciation of the British pound, the jewelry firm said.

There was a strong performance in important growth markets in Asia Pacific with revenue up 44 percent (40 percent in local currency). Asia Pacific now represents 25 percent of group revenue.

Meanwhile, revenue from America decreased 5 percent (down 9 percent in local currency), including a negative impact from network restructuring in the US.

Revenue from rings, earrings, necklaces and pendants all grew more than 40 percent, with the three categories now representing 25 percent of group revenue.

Commenting on the results, CEO Anders Colding Friis said: "We are satisfied by this quarter's results, having delivered good sales growth, including 8 percent like-for-like growth in our Pandora owned concept stores, and continued strong profitability.

"We are very pleased with the performance in our important growth markets, with Italy, France and China continuing to show strong sales growth. Additionally, some of our most developed markets continue to perform, with revenue from Australia up 27 percent. However, the retail climate in the US remains difficult, which was reflected in our performance in the US for the quarter.

"We continue to make progress towards our ambition to become a full jewelry brand, with revenue from rings, earrings and necklaces and pendants growing a combined 48 percent for the quarter."