Financials

Pandora Posts Strong Q1 But Warns of US Slowdown Ahead

FinancialsMay 04, 2022

Pandora Posts Strong Q1 But Warns of US Slowdown Ahead

The company said the “affordable” jewelry market in the U.S. is growing slower than the overall market.

2022_Pandora store.jpg
Pandora posted double-digit revenue growth in its first quarter but remains cautious about the year ahead in light of the war in Ukraine, COVID-19, inflation, and higher interest rates.
Copenhagen, Denmark—Pandora posted strong first-quarter results and raised its sales guidance for the year ahead.

Still, the company remains cautious about its fiscal future, noting the war in Ukraine, COVID-19, inflation, and higher interest rates could all negatively impact consumer demand.

“We are very pleased with the strong start to the year delivering record revenue for a first quarter,” said CEO Alexander Lacik. “All of our product platforms support the growth in Q1, as our ability to continuously offer new innovation pays off.”

Here are five key takeaways from the Danish jewelry company’s quarterly results.

Pandora’s quarterly revenue climbed double-digits.

First-quarter revenue was up 26 percent year-over-year to 5.7 billion Danish kroner ($805.4 million) compared with 4.5 billion Danish kroner ($637.1 million) in the first quarter last year.

It reported organic sales growth of 21 percent year-over-year.

Its sell-out growth (sales in Pandora-owned and -operated stores) was 17 percent year-over-year.

The company had a strong Valentine’s Day, with sales up about 30 percent year-over-year.

By sales channel, Pandora-owned retail stores, including the online store, brought in 3.9 billion Danish kroner ($555.7 million) in the first quarter, up 33 percent from the previous year.

Wholesale sales in the first quarter were up 15 percent to 1.6 billion Danish kroner ($221.8 million).

Pandora said its online sales performed well compared with 2019 levels, but were down compared with the previous first quarter, when COVID-19 lockdowns were in place.

Online organic growth was around 155 percent compared with the first quarter of 2019 and was the main contributor of growth from a channel perspective compared with 2019, said Pandora.

Given its strong first quarter, Pandora has upped its fiscal guidance for the year ahead.

It now expects organic revenue growth of 4 to 6 percent, up from its prior guidance of 3 to 6 percent. Its EBIT margin of 25 to 25.5 percent remains unchanged.

The U.S. market remains strong, but Pandora predicts a slowdown ahead.

In the United States, Pandora’s largest market accounting for 29 percent of total revenue, sales were up 19 percent in the first quarter.

Quarterly revenue in the U.S. totaled 1.7 billion Danish kroner ($233.6 million), up 19 percent year-over-year.

The U.S. market saw organic growth of 62 percent compared with Q1 2019 and has performed in line with Pandora’s expectations, the company said.

The Marvel collection did especially well in the U.S.

However, Pandora said it expects to see a “slowdown” in the U.S. market in 2022, noting the stimulus checks distributed in March 2021 boosted sales, making for tough year-over-year comparisons in Q2 2022. 

“Data indicates that the overall U.S. jewelry market has grown 11 to 18 percent in Q1 2022 and thereby above Pandora US. However, data also suggest that the affordable jewelry market has been growing much slower than the overall jewelry market,” said Pandora.

 Related stories will be right here … 

Pandora has been growing its footprint in North America.

In January, Ben Bridge Jeweler announced it was returning 37 Pandora stores, including 32 in the U.S. and 5 in Canada, to Pandora, looking to concentrate on its core business.

Pandora’s presence has grown especially strong on the West Coast, as 20 of the acquired Ben Bridge stores are located in California.

The acquisition is expected to give Pandora 170 million Danish kroner ($24.1 million) in incremental revenue for the full year, converting wholesale revenue to retail revenue.

The company also announced plans in February to open 28 shop-in-shops in Macy’s as it looks to increase its U.S. market share.

“The long-term aim is to double the U.S. business vs. 2019 and 62 percent organic growth vs. 2019 this quarter is an encouraging path toward this goal,” said Pandora.

“Pandora Me” and Marvel collections were top performers.

Pandora broke down its sales into “global business units,” or collections.

The “Pandora Me” collection saw revenue more than double, up 144 percent for the quarter.

Revenue from its “Collabs” collection, meaning collaborations, climbed 54 percent.

The company launched a Marvel collection in February, drawing jewelry inspiration from Avengers characters like Iron Man, Black Panther, The Hulk, and Captain America.

“The Marvel collaboration is building on Pandora’s strong relationship with Disney and proved an imminent success in the quarter. Marvel alone accounted for 3 percent share of business and has so far been outperforming the initial launch of both Star Wars and Harry Potter,” said Pandora.

Sales of the “Pandora Moments” collection grew 26 percent.

The “Pandora Brilliance” collection, which includes its lab-grown diamond jewelry, saw sales up 9 percent.

It was tested in the U.K to a positive reception and the company plans to roll it out this year, but said no new tests were conducted in the first quarter.

The company did test out a new loyalty program, My Pandora, in France, with plans to introduce it to more markets in 2023.

The test launch was conducted online and in 20 stores, with 50,000 consumers signed up in the first four weeks.

“My Pandora will further improve Pandora’s access to quality consumer data and with the new loyalty program, Pandora will be able to target the consumers directly with content of their interest,” the company.

Pandora is also creating a digital hub in London to attract digital and marketing talent.

Pandora has taken a strong stance against Russian goods.

Pandora made headlines last month when it announced it was leaving the Responsible Jewellery Council, citing the organization’s refusal to cut ties with Russian companies.

It was one of the first to do so, alongside Richemont, and followed by Kering, Watches of Switzerland, and others.

Pandora said it didn’t see any “major impact” on performance due to the war but has suspended business with Russia and Belarus.

Russia, Belarus and Ukraine combined accounted for about 1 percent of revenue in 2021, said Pandora.

“The 153 concept stores and 66 other points of sale in those markets are no longer considered part of Pandora,” said the company.

Pandora operates 2,432 concept stores as of the end of the first quarter, down 227 from the previous first quarter.

Pandora is planning to continue to increase its store network, expecting to open a net 50 to 100 concept stores worldwide.

The Latest

GIA iD100® Technology
Supplier BulletinJul 03, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Madison Keys in Brilliant Earth campaign
MajorsJul 03, 2025
Brilliant Earth Names Tennis Star Madison Keys as Its New Ambassador

The 2025 Australian Open champion is the jewelry brand’s first athlete ambassador.

Muse Nordstrom shop-in-shop
MajorsJul 03, 2025
Muse Sets Up Shop in Nordstrom’s New Jewelry Hall

The West Village jewelry boutique’s new shop-in-shop is the cornerstone of Nordstrom’s revamped jewelry hall.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Shree Ramkrishna Exports
SourcingJul 03, 2025
SRK Announces Its Natural Diamonds Are Now Carbon-Negative

This past year, the manufacturer said it recorded below-zero emissions per carat of natural diamond.

Weekly QuizJul 02, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Yeprem Golden Strada Statement Necklace
CollectionsJul 03, 2025
Piece of the Week: A Firework of Diamonds From Yeprem

The brand’s “Golden Strada” statement necklace features round, marquise, and pear diamonds that sparkle like Fourth of July fireworks.

Stock image of police cars with their lights on
CrimeJul 03, 2025
JSA Shares Holiday Weekend Security Tips Amid Spike in Burglaries

JSA’s Scott Guginsky provided a list of nine security measures jewelers should observe while locking up for the long weekend.

Jewelers of America logo with meetup, State of the Majors, giveaway and massages
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025

The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.

Exterior and entryway of Boucheron’s Los Angeles Flagship
MajorsJul 02, 2025
Boucheron Looks to LA for First West Coast Flagship

Located on Rodeo Drive, the store’s design was inspired by Hollywood and Los Angeles culture.

Exterior of Marco Bicego Milan Flagship
MajorsJul 02, 2025
Marco Bicego Opens Milan Flagship

The new location continues the brand’s celebration of its 25th anniversary.

Chrono24 Time Is Our Thing campaign image
WatchesJul 02, 2025
Chrono24 Revamps Brand, Launches New Campaign

The online watch marketplace’s “Time Is Our Thing” campaign highlights the importance of time.

Bernadette Mack
SourcingJul 02, 2025
Bernadette Mack Joins Gem Legacy as Executive Director

She will oversee strategic planning, fundraising, industry partnerships, and the launch of the Gem Legacy Campus in Tanzania.

Counterfeit Pandora jewelry in bags and boxes
CrimeJul 02, 2025
Pandora, Amazon Partner to Uncover Counterfeit Jewelry Network

Working with Amazon’s Counterfeit Crimes Unit and law enforcement, Pandora helped to shut down a large-scale counterfeit network in China.

Cast Issa Rae
MajorsJul 01, 2025
Cast Closes Business, Plans for Relaunch

The jewelry company has closed its three California brick-and-mortar stores, as well as its online shop, for now.

Eve Goldberg, Matthew Denatale, Willie Lopez, Benjamin Goldberg
Events & AwardsJul 01, 2025
William Goldberg Diamonds, FIT Partner for Apprenticeship Program

The company is providing the opportunity for an FIT student to work alongside master diamond cutter Willie Lopez in its workshop.

Elie Hannoush
IndependentsJul 01, 2025
Elie Hannoush, Founder of Hannoush Jewelers, Dies at 73

He is remembered for his successful entrepreneurship, generosity, and dedication to his family.

Claire’s store
MajorsJul 01, 2025
Claire’s Is Looking for a Buyer, Report Says

The jewelry store chain has reportedly been struggling with costs related to tariffs as well as tough retail competition.

Mindi Mond Spike Earrings
TrendsJul 01, 2025
Amanda’s Style File: Red Hot Rubies

Welcome warm summer days with red hot rubies perfectly chosen as July’s birthstone.

The Story of Everything Campaign, Toadstool Mushroom and Cosmic Egg
CollectionsJun 30, 2025
State Property’s New Jewelry Tells ‘The Story of Everything’

Co-founders Afzal Imram and Lin Ruiyin brought their son’s story of a cosmic egg, toadstool, and railroad to life in their new collection.

Smart Age Solutions CEO Emmanuel Raheb
ColumnistsJun 30, 2025
The Smart Lab: Why Q3 Is the Secret Weapon For Holiday Jewelry Sales

The best time to prepare for the holiday season is right now, according to columnist Emmanuel Raheb.

Morgan Keefe
Events & AwardsJun 30, 2025
AGA Names Recipient of 2025 Gemological Education Scholarship

This year’s winner is Morgan Keefe, who is currently studying at GIA to be a gemologist.

The Jewelry Book
IndependentsJun 30, 2025
Melanie Grant’s New Book Explores 200 Years of Jewelry

“The Jewelry Book” comes out this September.

Gemist
TechnologyJun 27, 2025
Gemist Raises $6M in Funding to Scale Jewelry Tech Platform

The company is focused on modernizing the custom jewelry buying experience with e-commerce tools like product visualization and 3D styling.

Jeff Preolo, David Stout, Levi Higgs, David Benavides
IndependentsJun 27, 2025
David Webb Announces New Hires, Promotions

Following its recent acquisition, the storied brand has updated its leadership team and regional managers.

Blake Graham and Jessica Kohoutek
Events & AwardsJun 27, 2025
AGS, GIA Announce Beatrice Shipley Scholarship Winner

AGS also named the recipient of its “Women in Leadership” scholarship.

Buddha Mama Monstera Ring
CollectionsJun 27, 2025
Piece of the Week: Buddha Mama’s ‘Monstera’ Wrap Ring

The 20-karat yellow gold and diamond wrap ring is modeled after the Monstera plants in the garden of the brand’s Miami villa.

Cashier handing Rocksbox bag to customer
MajorsJun 26, 2025
Why Rocksbox Is Opening Stores As Signet Jewelers Downsizes

Rocksbox President Allison Vigil shared the retailer’s expansion plans, and her thoughts on opening stores in malls.

×

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