Europe and Asia Drive Pandora Growth

RAPAPORT… Pandora Group’s sales jumped in the third quarter as strong
growth in Europe and Asia outweighed weakness in the US.



Revenue increased 13% to $809 million (DKK 5.19 billion) in
the three months ending September 30, the Denmark-based jewelry retailer
reported Tuesday.


Sales in Europe, the Middle East and Africa advanced 15% to
$397.9 million (DKK 2.56 billion), driven by growth of more than 20% in the UK,
Italy and Germany in local currencies. Asia-Pacific revenue jumped 26% to $173.2
million (DKK 1.11 billion), mainly due to increases in Australia and China.

US revenue increased 4% in local currency to $174.1
million (DKK 1.12 billion), helped by an expansion of the company’s store
network. However, the jeweler noted a tough US retail environment and an increase in
promotional activity in the sector. Hurricanes in Texas, Florida and the Caribbean during August and
September also damaged sales, it added.


“Most of our major growth markets — Germany, Italy,
Australia and China — continued to show strong performance with double-digit
growth rates,” said Pandora CEO Anders Colding Friis. Difficult market
conditions and the weakening of the US dollar “continued to be a challenge,” he
added.


Pandora’s third-quarter group profit slipped 3% to $212.8
million (DKK 1.37 billion).