Pandora Posts Strong Q2 as US Sales Surge

Copenhagen, Denmark—Pandora posted strong second-quarter revenue due in part to strong U.S. sales, upping its financial guidance for the year ahead.

The Danish jewelry company’s second quarter revenue rose 79 percent to 5.16 billion Danish kroner ($815.7 million), compared with 2.88 billion Danish kroner ($455.1 million) in the second quarter last year.

“Our strong momentum continued in the second quarter of 2021, and we are pleased that we delivered solid growth compared to 2019,” said CEO Alexander Lacik in a press release about the results.

“Performance in the U.S. and online continued to be strong, and in Europe most of our stores have now reopened.”

The company is continuing to test its lab-grown diamond line, “Pandora Brilliance,” in the U.K. and will make a decision on a global launch in late 2021.

The collection generated 18 million Danish Kroner ($2.85 million) in the second quarter, accounting for 3 percent of U.K. revenue.

By sales channel, Pandora-owned retail stores, including the online store, brought in 3.39 billion Danish kroner ($537.9 million) in the second quarter, up 37 percent from the previous year.

During the second quarter 2021, around 15 percent of Pandora’s physical stores were temporarily closed due to COVID-19 restrictions. In the U.S., that number was about 6 percent.

The company operated 2,630 concept stores as of the second quarter, 84 fewer when compared with the second quarter 2020. 

Wholesale sales in the second quarter were nearly five times higher than the previous year, up 375 percent to 1.59 billion Danish kroner ($253 million). 

Online sales in the quarter slipped 16 percent compared with 2020, but nearly tripled when compared to pre-pandemic 2019, up 179 percent year-over-year.

Pandora’s “click-and-collect” program—its buy online, pickup in store service—gained traction in the U.S., accounting for 13 percent of U.S. online sales.

Pandora has invested in driving online traffic, including email marketing and trying out new platforms in the U.S. like TikTok and Twitch, a live-streaming video service usually reserved for video games.

Around one-third of all Google searches for branded jewelry is for Pandora, said the company.

In the U.S., Pandora’s largest market accounting for 34 percent of total revenue, sales were strong in the second quarter, boosted by the stimulus packages.

The U.S. posted organic growth of 179 percent, with revenue totaling 1.77 billion Danish kroner ($280.2 million).

Looking ahead, Pandora once again upped its financial guidance for the fiscal year. 

It expects organic revenue growth to range between 16 and 18 percent, topping its previous estimate of more than 12 percent growth.

Guidance for EBIT margin rose to 23-24 percent from above 22 percent.

The updated guidance is dependent upon only 5 percent of stores being temporarily closed during the second half of 2021, compared with prior guidance of 5-10 percent.

Currently, about 8 percent of Pandora’s stores are temporarily closed or “severely impacted” due to COVID-19. 

The new guidance also presumes that COVID-19 will not have a major negative impact on its production and supply chain.

Pandora has completed its two-year “Programme Now” turnaround plan, which aimed to stabilize its topline, increase brand relevance and access, and reduce costs.  

It is in the middle of a new strategy, dubbed “Phoenix,” that is focused on sustainable growth. Details of the plan will be shared during its Capital Markets Day in September.