Pandora’s U.S. Revenue Grows 8 Percent
Published: Saturday 05 November, 2016
Pandora's U.S. sales jumped 8 percent in its third quarter, but the company saw a slowdown in sales from its signature charms.
Overall U.S. revenue totaled DKK 1.1 billion (about $160 million). In dollar terms, sales rose 9 percent. Comps at its concept stores rose 3 percent.
The "single digit negative growth" of charm sales in the United States was primarily driven by lower revenue from its Disney collection, it said. Excluding Disney, charm revenue would have risen 10 percent. The company saw good results in the U.S. from its eStore and Save More Spend More campaign. It has also opened 31 new concept stores in the United States in the last year, for a total of 340.
The brand's decision to close around 700 unbranded points of sale—500 in the United States, 200 in Canada, somewhat more than previously announced—could “bring down the full year and [will] have an impact on the full year revenue," CEO Anders Colding Friis told analysts in a conference call following the release of the financial results, according to a SeekingAlpha transcript.
The expected revenue impact from taking back inventory from closing multi-brand stores is DKK 150 million (about $22 million), he said. In addition, the closing stores did DKK 150 million in revenue last year.