Financials

Pandora’s Lab-Grown Diamond Line Coming to the US

FinancialsNov 03, 2021

Pandora’s Lab-Grown Diamond Line Coming to the US

The announcement coincided with the release of Pandora’s third-quarter results, with the brand posting strong growth in the U.S.

20211103_Pandora Brilliance.jpg
The “Pandora Brilliance” lab-grown diamond line will roll out in the United States and other key markets in 2022. Pandora announced the expansion during the release of its third quarter results.
Copenhagen, Denmark—Pandora posted strong third-quarter revenue growth as U.S. sales stayed strong, and once again upped its financial guidance for the year ahead.

The company also announced plans to begin the worldwide roll out of its lab-grown diamond line, “Pandora Brilliance,” in 2022 after a successful test run in the U.K.

The line includes rings, bangles, necklaces and earrings, each featuring a lab-grown diamond hand-set in sterling silver or 14-karat yellow or white gold. The collection’s motif is a take on the infinity symbol.

The Danish jewelry company’s third quarter revenue rose 16 percent to 4.73 billion Danish kroner ($736.2 million), compared with 4.07 billion Danish kroner ($633.7 million) in the third quarter last year.

It reported organic growth of 14 percent compared with 2020, while its sell-out growth (sales in Pandora-owned and -operated stores) of 5 percent year-over-year fell short of analyst expectations of 14 percent.

For the first nine months of the fiscal year, Pandora’s revenue is up 29 percent year-over-year.

“We are very pleased with the strong sell-out growth in the third quarter. [The] U.S., our largest market, continued the outstanding performance, yet again ahead of market growth,” said CEO Alexander Lacik in a press release about the results.

By sales channel, Pandora-owned retail stores, including the online store, brought in 3.09 billion Danish kroner ($482 million) in the third quarter, up 11 percent from the previous year.

During the third quarter 2021, around 5 percent of Pandora’s physical stores were temporarily closed due to COVID-19 restrictions. In the U.S, 1 percent of stores were closed in the quarter.

The company operated 2,616 concept stores as of the third quarter, 14 fewer when compared with the third quarter 2020. 

It plans to close 50 of these stores, at the high end of its prior guidance of 25 to 50 closures.

 Related stories will be right here … 

Wholesale sales in the third quarter were up 30 percent to 1.45 billion Danish kroner ($225.9 million).

Online sales in the quarter were up 2 percent compared with 2020, and up 94 percent when compared to pre-pandemic 2019.

Pandora’s “click-and-collect” program—its buy online, pickup in store service—accounted for 15 percent of U.S. online sales.

The service rolled out to France, Italy, Germany and Australia in the third quarter.

In the U.S, Pandora’s largest market, sell-out growth was strong in the third quarter, up 29 percent compared with 2020 and up 59 percent compared with 2019. Pandora attributed the growth partly to a boost from the stimulus packages.

The company has cut down on its promotional activity, noting that 98 percent of revenue in the region came from full-price sales.

Sales in Asia-Pacific continued to struggle amid COVID-19 restrictions while key European markets rebounded, including the U.K., Italy, and Germany, as stores began to reopen.

Looking ahead, Pandora upped its financial guidance for the fiscal year again.

It expects organic revenue growth to range between 18 to 20 percent, topping its previous estimate of 16 to 18 percent growth.

Guidance for EBIT margin rose to 24-24.5 percent from 23-24 percent.

The updated guidance is dependent upon there being “no other material COVID-19 restrictions implemented,” said Pandora in its presentation.

The new guidance also presumes that COVID-19 will not have a major negative impact on its production and supply chain.

Forecasting an uptick in demand for its jewelry, the company is building up its manufacturing capabilities, planning to build a new facility in Vietnam, and will expand the production capacity of its two facilities in Thailand.

The company plans to expand its manufacturing capacity by around 60 percent, or 80 million pieces of jewelry annually.

Editor's Note: A previous headline for this story said "Pandora Brilliance" would launch in the U.S. in 2022. The rollout will begin in 2022, with launch dates for individual countries to be announced later.

The Latest

Stock image of woman on laptop with charts
SurveysFeb 29, 2024
Want Insight Into Industry Salaries? Check Out This Careers Guide

From bench jewelers to appraisers, Jewelers of America’s updated guide shares an overview of how much industry employees are being paid.

Victoria Gomelsky and Valeriya Guzema
Events & AwardsFeb 29, 2024
JVC Announces Luncheon Speakers

Ukrainian jewelry designer Valeriya Guzema will be the focus of a live interview segment.

Sandra Cochran
MajorsFeb 29, 2024
Signet Appoints Former Cracker Barrel CEO to Board

Sandra Cochran has more than 25 years of retail experience.

GIA id100
Brought to you by
Full Disclosure at Your Fingertips

Distinguishing natural diamonds from laboratory-grown stones – now more available than ever – has been difficult for jewelers. Until now.

Symposium logo
Events & AwardsFeb 29, 2024
Symposium ’24 Announces Speaker Lineup

It’s a “who’s who” of the business, marketing, and jewelry world, said the event.

Weekly QuizFeb 29, 2024
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
JA New York Group Show Director Matthew Tratner
EditorsFeb 28, 2024
Q&A: Matthew Tratner on the Future of JA New York

The industry veteran, who took over as group show director last fall, talks about his vision for the 118-year-old trade show.

Macy’s Herald Square New York store
MajorsFeb 28, 2024
Macy’s to Close 150 Stores Over the Next 3 Years

However, the retailer plans to open more locations for its luxury brands, Bloomingdale’s and Bluemercury.

flashforge pic.png
Brought to you by
WaxJet: Revolution in Jewelry Manufacturing

The WaxJet 400, recognized as the world's fastest wax printer, is bringing in a new era of precision and efficiency to industry.

Shoppers holding bags in winter weather
SurveysFeb 28, 2024
Consumer Confidence Dips in February Amid Uncertainty

The Conference Board’s revised January reading suggests consumers did not start off 2024 as confidently as previously thought.

Marti Stephens
IndependentsFeb 28, 2024
Borsheims' ‘Ike-It’ Award Goes to Shop Manager

Marti Stephens was honored with the annual award.

Indian actress Saiyami Kher celebration sapphires
SourcingFeb 27, 2024
Fura’s New Sapphire Jewelry Is Traceable to the Source

The gemstone mining company’s “Celebration Sapphires” collection has launched in India.

National Jeweler columnist Lilian Raji
ColumnistsFeb 27, 2024
The PR Adviser: Leveraging Those Early Victories

Lilian Raji offers advice to a “small brand with big dreams” that is unsure of what its next step should be.

Sotheby’s MoonSwatch Suitcase auction
AuctionsFeb 27, 2024
Sotheby’s MoonSwatch Suitcases Sell for Over $600K

The auction house sold all 11 “MoonSwatch Moonshine Gold” suitcases, donating the proceeds to eye care nonprofit Orbis International.

Nikia Levesque
MajorsFeb 27, 2024
Nikia Levesque Joins WJA Board as Foundation VP

The association also announced five new board members.

Matteo Farsura Italian Exhibition Group
Events & AwardsFeb 27, 2024
IEG Names New Exhibition Manager for Jewelry, Fashion Division

Matteo Farsura, former exhibition manager of Vicenzaoro, will oversee the Italian Exhibition Group’s various jewelry and fashion shows.

Lightbox lab grown diamond pendant in yellow gold
Lab-GrownFeb 26, 2024
Lightbox ‘Significantly’ Lowered Its Prices in Q4

The De Beers-owned lab-grown diamond company dropped the price on its standard offerings from $800/carat to $600/carat.

JA New York signs
Events & AwardsFeb 26, 2024
JA New York to Bring the Diamond District to Spring Show

The upcoming show will have an immersive “47th Street Experience” for attendees.

GIA Dubai laboratory
GradingFeb 26, 2024
GIA Opens Lab in Dubai

The new DMCC Laboratory at Uptown Tower will initially serve clients in Dubai free trade zones.

Rolex Oyster Perpetual Day-Date 36 with affirmations
WatchesFeb 23, 2024
Rolex to Open New Watchmaking School in Dallas

The Rolex Watchmaking Training Center will welcome its first class this fall.

Guzema Freedom heart pendant for Ukraine
CollectionsFeb 23, 2024
Piece of the Week: Guzema’s ‘Freedom’ for Ukraine Pendant

Ukrainian jewelry designer Valeriya Guzema’s charitable “Freedom” collection is inspired by hope for the country’s future.

Elton John’s leopard print Rolex Daytona watch
AuctionsFeb 22, 2024
Elton John’s Leopard-Print Rolex Roars at Auction

Two Cartier watches also topped their estimates at Christie’s “The Collection of Sir Elton John: Goodbye Peachtree Road” evening sale.

Buccellati header
TrendsFeb 22, 2024
Buccellati to Open ‘Prince of Goldsmiths’ Exhibition

Set to be held in Venice, it’s a look through the maison’s history.

813-carat “Constellation” diamond in rough form
SourcingFeb 22, 2024
Lucara, HB Group Partnership Revived

It is another 10-year sales agreement in which all the larger rough recovered from the Karowe mine will go to HB Group for manufacturing.

Sebastian Clarke and Katherine van Dell of Heritage Auctions
AuctionsFeb 22, 2024
Heritage Auctions Adds 2 New Hires to West Palm Beach Office

Sebastian Clarke and Katherine van Dell, frequent appraisers on “Antiques Roadshow,” will join the new office.

National Jeweler columnist Sherry Smith
ColumnistsFeb 21, 2024
On Data: January Was a ‘Mixed Bag’ for Independent Jewelers

Sherry Smith dishes on the month’s highs and lows and the two categories consumers were loving ahead of Valentine’s Day.

Stock image of diamonds
GradingFeb 21, 2024
GIA’s Same-Day Service Now Available Everywhere

The new service, introduced to stem fraud related to lab-grown diamonds, will be offered at no cost for the time being.

Jam + Rico Claire’s jewelry
CollectionsFeb 21, 2024
Jam + Rico Debuts Second Claire’s Collection

Founder Lisette Scott was inspired by the intricacy, colors, and symbolism of African art and architecture.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy