Pandora reports strong revenue growth
Danish jewellery brand Pandora saw its revenue increase by 36.8% to DKK 3.5 billion in its first quarter as the group continued to expand its concept store network.
Its Europe business grew its revenues by 33.2% or 28.5% in local currency while the Asia Pacific region saw an increase of 55.6% or 34.9% in local currency. Meanwhile, revenues in the Americas climbed by 34.4% or by 12.8% in local currency.
Revenue from concept stores accounted for 54.9% of revenue and grew by 47.4%.
However, net profit fell to DKK 383 million from DKK 704 million in the same period in the previous year as the company was hit by additional tax expenses and finance costs.
Commenting on the results, Pandora chief executive Anders Colding Friis said: “Once again we are off to a strong start to the year, with all geographic regions, as well as all product categories generating double digit growth rates. Revenue growth was driven by strong like-for-like sales-out growth in many markets as well as the continued expansion of our concept store network. Furthermore, the profitability in the company continues to be very healthy, which is also evident from the strong cash flow generation in the quarter.”
Following exchange rate changes, Pandora has increased its full-year revenue guidance to DKK 15 billion from the previously guided DKK 14 billion. The brand is also planning to add more than 325 new concept stores in the year.
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