Pandora reports slight increase in US sales

Copenhagen, Denmark--Third-quarter sales of Pandora jewelry in the United States increased 3 percent (8 percent in local currency), the Danish brand said Tuesday.

Driven by sales of Pandora’s newest collections, U.S. revenues climbed from $128.1 million in the third quarter 2012 to $131.1 million in the third quarter 2013. Same-store sales at the brand’s U.S. concept stores were up 13 percent.

Globally, sales for Pandora reached $407.0 million, up 26 percent (33 percent in local currency) from the third quarter 2012.

Sales in the Americas as a whole increased 8 percent (15 percent in local currency). Revenue growth in other regions outpaced the Americas, with sales rising 47 percent (51 percent in local currency) in Europe and 38 percent (58 percent in local currency) in the Asia-Pacific region.

Pandora’s net profit increased 61 percent, from $68.4 million to $110.2 million. Gross margin was 66.2 percent, compared with 64.1 percent in the third quarter 2012.

Sales of both silver and gold bracelets and rings were up 32 percent while sales of charms climbed 9 percent. Sales of jewelry classified as “other” more than doubled.

Pandora CEO Allan Leighton said while they are pleased with their third quarter results, comp comparisons are going to become more difficult going forward.

“The third quarter result … confirms that the business has re-established a base platform to build from. Third quarter was also the last quarter with the easy comparative figures created by last year’s stock balancing program,” he said. “This obviously means that we are now entering a phase with more modest headline growth, but still underpinned by strong operating performance.”

At the beginning of 2012, amid sliding sales, Pandora instituted a program that allowed retailers to swap out discontinued merchandise for best-sellers on a one-for-one basis, a program the brand noted would be a drag on 2012 sales.

Looking ahead, Pandora upgraded it full-year guidance to $1.55 billion, which would be a 32 percent increase from sales of $1.17 billion in fiscal year 2012. The brand said it plans to open a total of 195 concept stores this fiscal year.