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

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