Pandora pulls out of 116 more stores

Copenhagen, Denmark--Pandora has dropped 116 more mostly-U.S.-based retailers from its distribution network in the Americas, the Danish brand announced Tuesday alongside its third quarter financial results.

The cutting of the additional stores brings the total number of retailers axed in the Americas to 346 so far this year: 105 in the first quarter and 125 in the second, plus the 116 eliminated in this most recent quarter.

The Copenhagen-based company has stated continually that the closing of “unbranded stores” in the Americas--meaning retailers that carry only a limited assortment of Pandora jewelry--is part of a larger, global strategy to focus more on company-owned and -operated stores and retailers that run its heavily branded shop-in-shops.

The announcement that Pandora has pulled its jewelry from more stores came as the company reported relatively soft third quarter sales in the U.S.

Revenue in the U.S., one of the company’s key markets, grew 6 percent year-over-year in local currency terms, from $120.2 million to $151.4 million.

Contributing to the growth was network expansion, including the launch of its e-commerce site here, the addition of the 22 concept stores acquired from Hannoush Jewelers and sales of rings.

However, the company took a hit by deciding to break from its traditional third quarter bracelet campaign and focus on charms instead, which was done to “enhance the Pandora brand,” the company said.

Globally, the brand saw sales climb 28 percent year-over-year in local currency, reaching $560.5 million.

Gross margin increased from 70.3 percent to 74 percent. Net profit soared to $144.2 million, compared with $103.9 million in the third quarter 2014. 

Pandora said it will continue to expand its network of company-owned and -operated stores, with more than 375 concept store openings planned for the remainder of 2015.

Remarking on the third quarter results, CEO Anders Colding Friis said, “The strong top-line development has continued to the third quarter of the year, and again all regions contributed to growth. Europe and Asia Pacific in particular did well … Growth in the U.S. was slightly softer than previous quarters primarily due to a change in promotion strategy in the region to further enhance our brand.”