Heading Into Q4, Pandora Raises Prices on Select Items 4%

FinancialsNov 08, 2022

Heading Into Q4, Pandora Raises Prices on Select Items 4%

Announced during its Q3 earnings call, Pandora also spoke on its new lab-grown diamond jewelry line.

20221108_Pandora Brilliance header.jpg
Two pieces from “Diamonds by Pandora,” the company’s line of lab-grown diamond jewelry that launched in the United States in August. Executives said Tuesday the line is off to a good start and the brand will begin offering 2-carat lab-grown diamonds for the holiday season. Currently, the largest size available is a 1-carat stone.
Copenhagen, Denmark—Pandora has raised prices an average of 4 percent on one-third of its global inventory and said the launch of its lab-grown diamond line in the United States has been “well received.”

The company made both announcements during its third-quarter earnings call with investors, a quarter that saw the popular Danish bead brand hold the line on sales, sending its stock price up 8 percent in trading Tuesday.

Pandora’s Q3 sales totaled 5.26 billion Danish kroner ($712.4 million), up 1 percent when compared with the third quarter 2021 (3 percent on an organic basis), and a 13 percent increase compared with Q3 2019.

EBIT margin was 18.6 percent, down from 20.2 percent in the third quarter 2021.

In the U.S., Pandora’s sales slowed down as expected due in part to the lack of stimulus money, which supplemented consumers’ disposable income in 2021.

U.S. third-quarter sales sunk 9 percent compared with 2021 (3 percent on an organic basis) but were up 56 percent when compared with 2019. 

The U.S. market was the test market for Pandora’s price increases, which were implemented in three stages beginning in the second quarter before going global in early October, CEO Alexander Lacik said on Tuesday’s earnings call. 

After several years of cutting back on promotions, Pandora raised prices on items it identified as having a “more favorable elasticity profile;” specifically, gold-plated jewelry as well as jewelry that’s made in collaboration with another brand. 

It did not raise prices on its entry-level items or “items of strategic importance.” 

When asked by an analyst about the impact of higher prices so far, Lacik said it’s too early to tell. 

He did note, however, that while the increases were implemented to drive revenue and profit, the company is wary of alienating customers, particularly potential new customers.  
“We know in the past that customers react [to higher prices], and they react with their feet,” he said. 

“It’s important that we allow people to come into the brand, then they have the opportunity to choose.”

 Related stories will be right here … 

Analysts also had numerous questions about the U.S. introduction of “Diamonds by Pandora,” the company’s new line of lab-grown diamond jewelry.

Lacik said the line has been “well received” in the market two months into its launch. The company will add a 2-carat lab-grown diamond option ahead of the holiday season.  

Diamonds by Pandora is sold at 270 stores across North America, as well as online, representing 3 percent of the company’s share of total business in the market. In physical stores offering the collection, it accounts for 5 percent of business. 

Lacik noted the Diamonds by Pandora consumer is so far skewing younger in the U.S. than in the United Kingdom. 

Millennials and Gen X were the main customers for Pandora’s lab-grown diamond jewelry in the U.K., while millennials and Gen Z are making up the lion’s share of customers so far in the U.S. 

He said millennials and Gen Z seem to be “more aware” of lab-grown diamonds and “much more open” to them than older customers.  

Looking ahead to the remainder of the fiscal year, Lacik said the company is sticking with its guidance for the fiscal year, which calls for organic revenue growth of 4-6 percent. 

“We don’t see a global recession creeping into our numbers yet.” 
He said they do expect some financial impact from the fire that swept through its European distribution center in Hamburg, Germany, on Oct. 30, but expects any impact to be “manageable.”  

There were no injuries or inventory damage in the blaze, and the team expects to have operations back to normal levels in the next few weeks.  

Between these efforts and support from its distribution center in Thailand, Pandora expects to be “well prepared” with inventory for the holiday season. 

In delivering his closing remarks on Tuesday’s call, Lacik noted he’s been asked by multiple journalists about what the future holds in light of the current uncertain macroeconomic and political climate. 

He did not have an answer for them. 

“I do not have a crystal ball,” he said. “As much as we wish we knew, we don’t know what the future holds for us, but we are ready to go.” 

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

National Jeweler columnist Emmanuel Raheb
ColumnistsMay 28, 2024
The Smart Lab: How to Effectively Navigate Jewelry Brand Requests

Emmanuel Raheb outlines six ways retailers can make brand relationships smoother and more beneficial for both parties.

Black In Jewelry Coalition Collective
Events & AwardsMay 28, 2024
BIJC Collective Returns to Las Vegas

The Black in Jewelry Coalition will showcase four designers at JCK Las Vegas and JCK Luxury.

Natural Diamond Council club JCK Las Vegas
Events & AwardsMay 28, 2024
Natural Diamond Council To Host Club in Vegas

Appointments can be made ahead of time for access to exclusive events.

Untitled design.jpg
Brought to you by
The End of an Era? Lab-Grown Diamonds' Journey Towards Price Stability

As the demand for lab-grown diamond jewelry may still be increasing, the most notable change we are likely to see is price stabilization.

De Beers CEO Al Cook and Signet Jewelers CEO Gina Drosos
SourcingMay 24, 2024
Signet, De Beers Have a Plan to Promote Natural Diamonds

The two industry giants are working together on a new marketing campaign.

Weekly QuizMay 23, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Stock image of a diamond engagement ring
SourcingMay 24, 2024
De Beers’ Sales Slide in Fourth Round of Sales This Year

The company sold $380 million in rough diamonds, compared with $479 million in the same period last year.

Tiffany Venetian glass bead ear clips
TrendsMay 23, 2024
State of Jewelry Design: 3 Themes That Will Shape the Next 5 Years

Color, storytelling, and the use of nonconventional materials are the signatures of today’s most innovative and influential designers.

1872 x 1052 Gemolite.jpg
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional Edition

GIA®’s most advanced microscope has new features to optimize greater precision and comfort.

Van Cleef & Arpels tie necklace
AuctionsMay 23, 2024
Sotheby’s to Offer Rare VCA Necklace, ‘Lavender Dream’ Diamond

A tie necklace from Van Cleef & Arpels and a pinkish purple diamond are highlights of the upcoming New York jewelry auction.

Inoveo Platinum
MajorsMay 23, 2024
PGI to Debut New Platinum Alloy in Las Vegas

Inoveo Platinum will be distributed exclusively by Stuller in the U.S.

Alan Hart Headshot
MajorsMay 23, 2024
Gem-A CEO Alan Hart Resigns

He is stepping down in August after eight years as CEO.

Rose cut arch cabochons Columbia Gem House
SourcingMay 22, 2024
State of Colored Stones: Why the Market Is More Colorful Than Ever

As prices of “The Big Three” skyrocket, supply dwindles, and focus on sustainability grows, an age of open-mindedness is dawning.

The Eden Rose, a 10.20-carat fancy intense pink diamond
AuctionsMay 22, 2024
Christie’s Website Back Online, Announces Plans to Auction 10-Carat Pink Diamond

The fancy intense pink “The Eden Rose” is estimated to sell for up to $12 million at the New York “Magnificent Jewels” sale next month.

Pandora Essence jewelry
CollectionsMay 22, 2024
Pandora’s New Jewelry Collection Reimagines the Essentials

The “Pandora Essence” collection brings a contemporary and sculptural feel to staples like gold hoops and pearl necklaces.

Instore show 2024
Events & AwardsMay 22, 2024
InStore ‘Cram Day’ To Focus on Lab-Grown Diamond Education

The limited-seating learning event precedes its second annual trade show, which starts Aug. 11.

Swarovski New York City flagship
IndependentsMay 21, 2024
State of Retail: 4 Retail Design Trends for 2024

From lighter color palettes to the integration of AR, experts offer inspiration for jewelers in need of an aesthetic refresh.

Dame Shirley Bassey’s
AuctionsMay 21, 2024
Dame Shirley Bassey’s Diamonds Are Ready for Their Encore

Sotheby’s will auction jewelry belonging to the “Diamonds Are Forever” singer in Paris this October.

National Jeweler columnist Sherry Smith
ColumnistsMay 21, 2024
Successful Vendor Relationships: A Win-Win Approach

Sherry Smith shares tips for fostering successful vendor-retailer partnerships, from marketing investment to fast-seller replenishment.

Jennifer Herold, Independent Jewelers Organization vice president
IndependentsMay 21, 2024
Jennifer Herold Promoted to VP at IJO

Herold has been with the organization for 22 years and will continue in her current role of conference director.

Studs pop-up
MajorsMay 20, 2024
Studs Opens Luxury Piercing Pop-Up in NYC

“Fancy Studs” will feature revamped branding and a new lab-grown diamond fine jewelry collection.

Nivoda executive team at table
SourcingMay 20, 2024
2 Business-to-Business Platforms Secure Millions in Funding

Nivoda and Liquid Diamonds both have big plans for the new capital.

Stuller Packaging & Displays 2024-2025 catalog
MajorsMay 20, 2024
Stuller Issues New Packaging & Display Catalog

The 2024-2025 edition features new colors and styles, as well as storytelling elements.

Elephants wading in the Okavango Delta in Botswana
SourcingMay 20, 2024
State of the Diamond Industry: Botswana Beyond Diamonds

From moringa to ecotourism in the Okavango Delta, the country and its leaders are exploring how Botswana can diversify its economy.

Rough diamonds from De Beers
SourcingMay 20, 2024
Anglo American Confirms It Is Looking to Sell De Beers

The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”

My Next Question webinar series graphic
Recorded WebinarsMay 17, 2024
Watch: Preparing for Trade Show Success

Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.

Cartier ring-tailed lemur brooch circa 1991
AuctionsMay 17, 2024
Piece of the Week: Cartier’s Ring-Tailed Lemur

This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.

202.18 carat fancy intense yellow diamond The Yellow Rose
AuctionsMay 16, 2024
Christie’s Holds 2 Sales Despite Cyberattack

Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.


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