Pandora Posts Record First-Quarter Revenue

RAPAPORT… Pandora saw record revenue in the first quarter amid strong Valentine’s Day sales and the reacquisition of franchised stores.

Revenue rose 21% year on year on an organic basis — a similar metric to comparable-store sales — for a total of DKK 5.7 billion ($804.3 million) in the period that ended March 31, the Danish jeweler said Wednesday. Sales for the Valentine’s Day holiday increased 30% relative to the year before.

Contributing to the growth was the reclamation of 32 Pandora franchise shops in the US and five in Canada that had been operated by Ben Bridge, Pandora noted. The retailer also formed a partnership with Macy’s that led to the opening of 28 shop-in-shops in the first three months of the year.

Online sales surged 155% on an organic basis versus 2019 but fell 17% compared to 2021, when stores were closed due to Covid-19 and consumers were unable to make in-store purchases. Profit soared 58% to DKK 995 million ($140.7 million).

Those factors outweighed the loss of business from the temporary closure of 30% of Pandora’s store network during the quarter due to the virus, as well as the suspension of all business in Russia and Belarus from the end of February as a result of the invasion of Ukraine. Together, Russia, Belarus and Ukraine comprised approximately 1% of revenue in 2021.

Pandora has increased its forecast for the full year amid the continued strong demand and sales. It now expects revenue to grow 4% to 6% for the full year compared to 2021, adjusted from its initial prediction of 3% to 6%, it added.

“We are very pleased with the strong start to the year, delivering record revenue for a first quarter,” said Pandora CEO Alexander Lacik. “I am encouraged by the growth opportunities we have ahead of us. For the last two years, we have invested in building a stronger organization, and this is increasingly visible in the numbers and how we drive the company forward.”

Image: A Pandora gift package. (Shutterstock)