Financials

In Q1, Pandora Notes ‘Heightened Consumer Hesitancy’ in US

FinancialsMay 04, 2023

In Q1, Pandora Notes ‘Heightened Consumer Hesitancy’ in US

Pandora’s like-for-like sales were flat globally while they fell 7 percent in the United States.

20230504_Pandora lab-grown diamond rings.jpg
A stack of lab-grown diamond rings from “Diamonds by Pandora,” the company’s lab-grown diamond line that launched in the United States last summer. Diamonds by Pandora sales totaled $5 million in the first quarter, the company reported Tuesday.
Copenhagen, Denmark—First-quarter sales essentially were flat for Pandora, as the company famous for its affordable, collectible beads continues to grapple with declines in consumer spending amid inflation and rising interest rates. 
 
Pandora reported Tuesday that first quarter 2023 sales totaled 5.85 billion Danish kroner ($868.2 million) up about 3 percent from DKK 5.69 billion ($844.4 million) in the first quarter 2022. 
 
However, like-for-like sales were flat, and organic growth was only 1 percent, which Pandora described as “resilient growth despite macroeconomic challenges.” 
 
EBIT margin in the first quarter was 21.5 percent, down from 23 percent in the prior-year period, mainly attributable to the money the company is sinking into its turnaround plan, dubbed “Phoenix,” and employee raises. 
 
The company noted that the price increases it implemented six months ago have had a positive impact on EBIT margin without negatively impacting sales, and it will consider raising prices again in the future while still keeping its jewelry affordable. 
 
“We have started 2023 well with resilient growth and solid margins,” Pandora President and CEO Alexander Lacik said. 
 
“Our investments in lifting the brand are paying off with good performance in our ‘Moments’ base business and strong results from newer platforms, ‘Timeless’ and ‘Pandora ME’ … The macroeconomic outlook remains uncertain, but we are confident in our ability to adapt and thrive, as we’ve proven over the past few quarters.” 
 
 Related stories will be right here … 
 
In the United States, first-quarter revenue totaled DKK 1.72 billion ($254.8 million), up 4 percent from DKK 1.65 billion ($245 million) in the first quarter 2022. 
 
On a like-for-like basis, Pandora’s quarterly sales in the U.S. slipped 7 percent—the same as in Q4—and organic sales were down 4 percent. 
 
Pandora said sales at company-owned and -operated stores improved between the fourth quarter 2022 and first quarter 2023 while the performance of franchise stores declined. 
 
Conversion rates also were slightly lower due to signs of “heightened consumer hesitancy.” 
 
The U.S. is Pandora’s largest market, accounting for 29 percent of revenue worldwide, twice as much as the company’s second biggest market, the United Kingdom (14 percent). 
 
In reporting its first-quarter results, the company also gave an update on “Diamonds by Pandora,” its lab-grown diamond jewelry line piloted in the U.K. and launched in the U.S. in August 2022.

Revenue from sales of Diamonds by Pandora totaled DKK 34 million ($5 million) in the first quarter, up from DKK 9 million ($1.3 million) in the first quarter 2022, before it had expanded to the U.S. 
 
The company said the line is “tracking as planned” while noting its potential, which it aims to realize by expanding the assortment and investing in marketing while also rolling out to more markets later this year. 
 
Diamonds by Pandora currently accounts for 1 percent of Pandora’s total revenue. 
 
 
Looking ahead to the rest of 2023, Pandora is raising its guidance despite political and economic uncertainty, citing its resilient Q1 performance while also noting, “the economic outlook for the remainder of 2023 remains uncertain. High inflation and rising interest rates suggest that consumer spending will continue to be under pressure.” 
 
Pandora updated its guidance to organic growth of -2 percent to 3 percent, a slight improvement from the previous range (-3 percent to 3 percent). 
 
It is forecasting like-for-like sales growth will be flat at best and down 4 percent at worst, a range that depends on how macroeconomic conditions progress throughout 2023.  
 
As of the first quarter, Pandora operated a total of 6,483 points of sale worldwide, a mix of concept stores (Pandora-owned, franchisee-owned, and third-party distribution) as well as other points of sale, which includes shop-in-shops like the ones it has in Macy’s stores in the U.S. 
 
That is 44 fewer points of sale than the company had at the close of 2022 (6,527). 
 
Pandora expects to open a net of 50-100 concept stores this year and 50-100 company-owned and -operated other points of sale.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Exterior of Marissa Collections’ new store in Nantucket, Massachusetts
IndependentsJun 25, 2025
Marissa Collections Opens in Nantucket as Legal Fight Continues

The Vault’s Katherine Jetter is accusing the retailer of using info she shared for a potential partnership to move into Nantucket.

Counterfeit Cartier “Juste Un Clou” bracelet
CrimeJun 25, 2025
Customs Nabs Another Big Shipment of Fake Cartier, Van Cleef Jewelry

Agents seized 2,193 pieces, a mix of counterfeit Cartier “Love” and “Juste Un Clou” bracelets, and Van Cleef & Arpels’ “Alhambra” design.

Karine Choudhrie Big Splash Circus Starfish and Lantern Fish
CollectionsJun 25, 2025
Splash into Karina Choudhrie’s Collection of Underwater Circus Performers

The designer brought her children’s book, “The Big Splash Circus,” to life through a collection of playful fine jewelry characters.

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.

Jewelers of America
Events & AwardsJun 25, 2025
JA Announces Impact Initiative Fund Recipients

The trade association has chosen the recipients of the funding initiative it formed to foster the growth and sustainability of the industry.

Weekly QuizJun 20, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
John Dyer Montana Sun Sapphire
SourcingJun 25, 2025
2025 AGTA Spectrum Awards Open for Entries

The organization has also announced this year’s slate of judges.

Khepri Jewels Luna collection fancy color fringe multi-shape drop diamond earrings
EditorsJun 24, 2025
The Best New Jewelry from Couture 2025, Part 2

Associate Editor Natalie Francisco shares 20 additional pieces that stood out to her at the Couture show.

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.

Lori Tucker
IndependentsJun 24, 2025
Colorado Bench Jeweler Celebrates 50 Years With Local Retailer

Lori Tucker started at Williams Jewelers when she was 18 years old.

“Marvel | Citizen Zenshin” watch for the new The Fantastic Four movie
WatchesJun 24, 2025
Citizen’s New ‘Fantastic Four’ Watch Is Literally Super

The “Marvel | Citizen Zenshin” watch is crafted in Super Titanium and has subtle nods to all four “Fantastic Four” superheroes on the dial.

XO Tacori diamond ring
MajorsJun 24, 2025
Tacori, QVC to Launch Exclusive Lab-Grown Diamond Jewelry Collection

The “XO Tacori” collection was designed to blend luxury and accessible pricing.

Pritesh Patel
GradingJun 23, 2025
GIA Names New President and CEO

Pritesh Patel, the lab’s chief operating officer, will take over as president and CEO of GIA.

Graphic for Las Vegas recap episode of “My Next Question”
Recorded WebinarsJun 23, 2025
Watch: Top Trends at Couture, JCK Las Vegas 2025

National Jeweler and Jewelers of America discuss the standout jewelry trends and biggest news to emerge from the shows this year.

Luanda Accord
SourcingJun 23, 2025
Diamond Producers, Organizations to Kick in Money to Promote Natural Diamonds

Signatories to the “Luanda Accord” committed to allocating 1 percent of annual diamond revenue to the Natural Diamond Council.

Penny Preville, Maggie Hess, Stella Song, and Benjamin King
Events & AwardsJun 23, 2025
Jose Hess Design Awards Celebrate 6 Jewelry Designers

The winning designs captured the “Radiance” theme.

24th Gem Awards Show Logo
Events & AwardsJun 23, 2025
Gem Awards Now Accepting Nominations for 2026

Nominations in the categories of Jewelry Design, Media Excellence, and Retail Innovation will be accepted through July 30.

Single Stone Bryn Ring and Grace Lee Marquise Demi Demi Ring
TrendsJun 20, 2025
Dua Lipa Stays On-Trend With Chunky Engagement Ring

The singer’s ring ticks off many bridal trends, with a thick band, half-bezel setting, and solitaire diamond.

Yvonne Léon Python Gold Bracelet
TrendsJun 20, 2025
Piece of the Week: Yvonne Léon’s ‘Python Gold’ Bracelet

The bracelet references vintage high jewelry and snake symbolism as a playful piece where a python’s head becomes a working belt buckle.

Stock image of handcuffs
CrimeJun 18, 2025
7 Men Indicted in $100M Brinks Jewelry Heist

The heist happened in Lebec, California, in 2022 when a Brinks truck was transporting goods from one show in California to another.

Marie-Thérèse Pink diamond and Blue Belle sapphire necklace
AuctionsJun 18, 2025
Historic ‘Marie-Thérèse Pink’ Diamond Fetches $14M at Christie’s

The 10-carat fancy purple-pink diamond with potential links to Marie Antoinette headlined the white-glove jewelry auction this week. 

Caryl Capeci Starboard Cruises
EditorsJun 18, 2025
Q&A: Caryl Capeci Dives Into Cruise Jewelry Shopping

The Starboard Cruises SVP discusses who is shopping for jewelry on ships, how much they’re spending, and why brands should get on board.

Gresham grasshopper ring
AuctionsJun 18, 2025
16th-Century ‘Gresham Grasshopper’ Ring Sells for $56K

The historic signet ring exceeded its estimate at Noonans Mayfair’s jewelry auction this week.

Kirk Kara fine jewelry
CollectionsJun 18, 2025
Kirk Kara Celebrates 135 Years With New Jewels

To mark the milestone, the brand is introducing new non-bridal fine jewelry designs for the first time in two decades.

Gemfields 36 Carat Ruby
SourcingJun 18, 2025
Gemfields Sells 36-Carat Rough Ruby

The gemstone is the third most valuable ruby to come out of the Montepuez mine, Gemfields said.

Alex Brown
TechnologyJun 18, 2025
Alex Brown Named President of Smithee Group

Founder and longtime CEO Ben Smithee will stay with the agency, transitioning into the role of founding partner and strategic advisor.

Jade Ruzzo Gloria Collar
EditorsJun 17, 2025
The Best New Jewelry from Couture 2025, Part 1

Associate Editor Natalie Francisco shares 20 of her favorite pieces from the jewelry collections that debuted at Couture.

Jewelry industry author, speaker, and sales expert Peter Smith
ColumnistsJun 17, 2025
Peter Smith: Is Your Comp Plan a Hiring Hindrance?

If you want to attract good salespeople and generate a stream of “sleeping money” for your jewelry store, then you are going to have to pay.

×

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