Pandora reported its fourth consecutive quarter of strong growth, driven by the opening of several stores and a successful Valentine’s Day.
Revenue rose 1% year on year on an organic basis — a similar metric to comparable-store sales — in the first quarter, for a total of DKK 5.85 billion ($864.8 million), the Danish jeweler said Wednesday. Pandora opened a net 87 concept stores and 112 new owned and operated shop-in-shop locations, providing a 3% increase in sales.
The company also noted a strong contribution from the February 14th love holiday, as well as from UK Mother’s Day, which fell on March 19. Pandora implemented price hikes across its products in the fourth quarter of 2022. Those increases contributed to the rise in revenue for the period ending March 31, 2023, the retailer explained.
Online sales slipped 6% on an organic basis versus the same period a year ago. Meanwhile, profit fell 11% to DKK 889 million ($131.4 million).
Solid sales in the US and other European markets did not completely offset a slow rebound in China, Pandora noted. However, the company saw a “gradual, but continued pickup” on the mainland since the government eased restrictions and reopened borders in January, it said.
Pandora has increased its forecast for the full year amid its “solid start to the year,” it explained. The company now expects organic revenue growth of between minus 2% and 3% for the full year compared to 2022, adjusted from its initial prediction of minus 3% to 3%, it added.
“We have started 2023 well with resilient growth and solid margins,” said Pandora CEO Alexander Lacik. “Our investments in lifting the brand are paying off with good performance in our Moments bae business and strong results from the newer platforms, Timeless and Pandora ME. It’s clear that we are increasingly the jewelry brand of choice, particularly for gifting occasions.”
Image: A Pandora store in Shanghai, China. (Shutterstock)