Copenhagen-based mass-market jewellery brand PANDORA reported a 12 percent year-on-year growth in revenue to $761 million (DKK 4.83 billion), while pre-tax earnings of $254.2 million (DKK 1.61 billion), translating to a 33.4 percent margin, were 3.8 percent below the Q2 2016 margin, impacted by higher administrative costs.
Revenue from company-owned retail increased 36 percent, while like-for-like sales-out growth for company-owned concept stores was 10 percent. Revenue from European, Middle East and African markets rose 10 percent, driven by growth in all the main markets, while revenue from the Americas rose by one percent — a one percent drop in local currency.
Financial guidance for fiscal 2017 is maintained, including expected revenue of $3.63-$3.8 billion (DKK 23-24 billion) and pre-tax margin of approximately 38 percent.
Commenting on the results, CEO Anders Colding Friis said, ”We are pleased with the results for the second quarter delivering double digit top-line growth and continued healthy profitability. Markets like China, Italy, the UK, and Australia performed well, reflecting the significant growth potential for our product offering in both our newer and more developed markets. We also continue to make strides in improving the quality of our global store network and added net 70 new concept stores during the quarter.”
He went on to say, “The retail environment in the US remains challenging, however, our strategy has delivered a solid improvement in the performance of the concept store network. Additionally, we are rolling out a number of initiatives to strengthen our US business even further.”
https://www.gemkonnect.com/news/pandora-q2-revenue-12-761m-us-market-remains-challenging