Pandora Cut No. of Multi-Branded Retailers by 32% in 2016

Copenhagen, Denmark--Pandora saw global revenue rise 21 percent in 2016 as it continued to open more concept stores and shop-in-shops while closing accounts at multi-branded retailers.

The Danish bead and jewelry brand reported Tuesday that revenue in the Americas was up 5 percent, from $937.8 million to $983.0 million.

Sales in the United States were up 5 percent to $740.4 million, accounting for one-quarter of Pandora’s total global revenue.

During the year, Pandora opened net 27 new concept stores in the U.S., bringing the total in the market to 346. It closed accounts at 829 multi-branded retailers, including the more than 200 Jared the Galleria of jewelry stores that were converted into shop-in-shops.

Looking at the U.S., Latin America and Canada (the Americas), the number of branded stores--meaning concept stores and shop-in-shops--grew 26 percent to 1,484 in 2016.

The number of multi-branded points of sale, meanwhile, shrunk by 53 percent from 1,888 in 2015 to 881 by the end of 2016.

Globally, Pandora reported that its 2016 revenue totaled $2.92 billion, up from $2.40 billion in 2015.

Earnings before interest, tax, depreciation and amortization (EBITDA) was $1.13 billion, a 27 percent increase. EBITDA margin for the year was 39.1 percent compared with 37.1 percent in 2015.

Pandora attributed the growth to the opening of net 336 concept stores--or, almost one a day--noting that, “Together with the closing of multi-branded stores, this gave us a stronger and much more branded store network compared with the beginning of the year.”

The openings brought the company’s global total to 2,138 concept stores in addition to 2,027 shop-in-shops and 17 online stores worldwide. Pandora said its best-performing store in terms of sales was the Pitt Street store in Sydney, Australia.

Meanwhile, the number of multi-branded retailers that sell Pandora was cut by 1,829, dropping from 5,795 in 2015 to 3,966 by the end of 2016. Multi-branded retailers declined from generating 18 percent of global revenue in 2015 to 14 percent in 2016.

Pandora noted that while multi-branded stores have “historically been an important part of (its) strategy, especially in new and expanding markets,” their numbers will “naturally decrease” as it opens more concept stores and shop-in-shops.

In 2017, Pandora is entering the Indian market through a partnership with Pan India Charms & Jewellery Pvt. Ltd, as previously announced.

The company said it expects global revenues of $3.3-$3.45 billion in 2017, an increase of 13 to 18 percent, with revenue