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Pandora Revenue Up as Price Hikes Pay Off

February 9, 2023  |  Leah Meirovich
Pandora store NY credit Shutterstock

Pandora’s revenue rose 9% year on year in the fourth quarter amid a rollout of price increases across select products and strong demand for its lab-grown line.

Sales for the three months ending December 31 reached DKK 9.86 billion ($1.42 billion), the company reported Wednesday. In October, Pandora increased the prices on one-third of its products by an average of 4%, which contributed to the revenue growth during the quarter. The Danish retailer also launched synthetic brand Diamonds by Pandora online and at 269 stores in North America. That collection added 10% of incremental sales and saw a 196% increase in sell-out growth during the period, Pandora noted.

Diamonds by Pandora “continues to see promising results,” Pandora CEO Alexander Lacik said on an analyst call transcribed by Seeking Alpha. “There is a large range on this. But we are convinced that the opportunity is vast. We believe the brand is ready to be stretched with the category selling at 15 times the average selling price from Pandora’s traditional US products.”

Online sales during the quarter slipped 3% on an organic basis, as consumers returned to shopping in stores. That compares with an e-commerce sales jump of 91% during the same period a year earlier, when Covid-19 restrictions were still in place in some countries. Profit for the period grew 24% to DKK 2.37 billion ($341.3 million).

Sales in the US and the UK, two of Pandora’s largest markets, remained strong. Those outweighed a steep drop in China, due to coronavirus outbreaks and social-distancing measures. Some European markets, including Italy, France and Germany, also saw decreases as the economic situation weakened consumer sentiment, the jeweler explained.

Full-year sales for 2022 jumped 13% to DKK 26.46 billion ($3.82 billion), while profit climbed 21% to DKK 5.03 billion ($726.7 million).

Image: A Pandora store in New York. (Shutterstock)


Pandora store NY credit Shutterstock Pandora Revenue Up as Price Hikes Pay Off

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