Following strong Q1, Pandora raises guidance

Copenhagen, Denmark--Pandora experienced a 30 percent jump in sales in the first quarter and is continuing to shift its focus away from independent retailers as it opens more and more concept stores. 

In its interim report issued Tuesday, Pandora cited the new products it introduced in the first quarter for Valentine’s Day and Mother’s Day as being one of the key drivers to sales. 

The company also noted that while growth was strong globally, sales in the United States were not one of the key drivers. 

First quarter sales of Pandora in the U.S. grew 9 percent in local currency terms, as compared with local currency growth rates of 52 percent in the United Kingdom, 42 percent in the Americas outside of the U.S. and 72 percent in the Asia Pacific region. 

Total global sales for Pandora were up 30 percent (34 percent in local currency) year-over-year in the first quarter to $476.1 million. The company said there has been a “positive reception” to its Valentine’s Day, Spring and Mother’s Day collections, all of which were released in the first quarter. 

Gross margin rose from 65.6 percent to 69. 1 percent. Net profit for the quarter was $129.3 million compared with $80.5 million in the prior-year period, a 61 percent increase.

The  Copenhagen-based bead-maker now says it expects revenue for fiscal year 2014 to reach $1.93 billion, up from its previous forecast of $1.84 billion. Pandora’s fiscal year 2013 revenue totaled $1.65 billion. 

The company also said that it expects to open 50 more concept stores than originally planned this year, a total of 225 up from 175. 

“We are pleased to see that the strong momentum has continued into 2014 … All regions increased double-digit percentages, primarily driven by strong like-for-like growth, which was positively impacted by a good reception of all our new collections and replenishment from a strong Christmas period,” Pandora CEO Allan Leighton said. “Our upgraded revenue guidance reflects this quarter’s performance but also the expectancy that the absolute levels of growth moderate for the rest of the year.”