Financials

Pandora’s US Sales Bounce Back in Q3

FinancialsNov 09, 2023

Pandora’s US Sales Bounce Back in Q3

Sales increased 5 percent after a down quarter as the brand saw in-store traffic pick up.

Grace Coddington in Pandora’s Diamonds for All campaign
Cat enthusiast and former model and Vogue Creative Director At-Large Grace Coddington is among the faces of Pandora’s “Diamonds for All” campaign, launched earlier this year to promote its new lab-grown diamond jewelry. The jewelry brand said investments in marketing helped propel sales in the third quarter.
Copenhagen, Denmark—Pandora recorded solid third-quarter results despite the overall decline in jewelry sales, with the brand reporting an uptick in traffic it attributes to the money it’s sunk into marketing.

It also noted an “unexpected” increase in demand from tourists, including domestic tourists, a pattern it said may not repeat in Q3 2024.

Globally, Pandora’s sales grew 11 percent year-over-year (9 percent on a like-for-like basis) to 5.57 billion Danish kroner ($799.6 million) in the third quarter, the company reported Wednesday.

Gross margin hit an all-time high of 79 percent, due to Pandora’s decision to raise prices beginning in late 2022, as well as cost efficiencies and channel mix. 

Operating profit (EBIT) fell 6 percent from DKK 978 million ($140.4 million) to DKK 920 million ($132.1 million) due to rising costs, but the drop was less than analysts expected, prompting the jewelry company to raise its annual guidance once again. 

Pandora now forecasts sales to grow between 5 percent and 6 percent, up from previous guidance of 2-5 percent.  

“We are very pleased with our results this quarter,” said President and CEO Alexander Lacik. 

“Our investments in the brand are attracting more consumers into our stores. We have delivered strong broad-based growth whilst our all-time high gross margin underpins our unique earnings model. We … continue to see very exciting opportunities ahead for Pandora, as we embark on the next chapter of our growth strategy.” 

Pandora is in the middle of a turnaround plan, dubbed “Phoenix.” 

At Capital Markets Day in London in October, the company started the next chapter of the plan, investing in global campaigns and fashion events in order make consumers see Pandora as a full jewelry brand, not just a company that makes charm bracelets. 

 Related stories will be right here … 

In the United States, Pandora’s largest market, like-for-like sales were up 5 percent, rebounding from a 4 percent slide in Q2 and a 7 percent decline in Q1.

The company said its marketing initiatives in the U.S. drove more people into its stores in the third quarter and conversion rates were “healthy.”

Wholesale sales also improved, though a gap still remains between the performance of wholesale points of sale and company-owned and -operated locations. 

The company mentioned specifically the events it held during New York Fashion Week in late August to introduce the additions it has made to the “Pandora Lab-Grown Diamonds” line (formerly called “Diamonds by Pandora”). 

Overall, however, Pandora said the new lab-grown diamond jewelry contributed only incrementally to the company’s Q3 sales growth in the U.S., acknowledging it is still early days for the expanded range.

Pandora now sells lab-grown diamonds in four places: the U.S., Canada, the United Kingdom, and Australia. It said it plans to expand the line into Mexico and Brazil this month.

Like-for-like sales in the category grew 84 percent year-over-year in the third quarter, though Pandora notes that was against a comparatively low base. 

Lab-grown diamonds still only accounted for 2 percent of the company’s total quarterly revenue. 


Pandora opened 27 concept stores and 16 shop-in-shops in the third quarter. The company said it remains on track to open a net 75-125 concept stores and 50-100 other points of sale this year. 

Pandora is converting a growing number of concept stores to its new store model, called Evoke 2.0. 

The new layout and look is intended to emphasize the concept of Pandora as a full jewelry brand by showing all the company’s collections in an “intuitive and engaging” way.

Year-to-date, the company said it has opened 22 Evoke 2.0 stores and is on track to open more than 40 globally this year, including the refurbishment of existing stores.

Pandora also noted that through the first nine months of 2023, it has bought a total of 46 concept stores from franchisees in order to convert them into Pandora-owned retail locations. 

Thirty-two of these stores were in the United States, with the remaining 14 in Colombia.  

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

The Latest

De Beers CEO Al Cook
EditorsJun 17, 2024
Q&A: Al Cook on the Future of De Beers

The De Beers CEO discussed the Anglo American situation, natural diamond marketing, and why the future of lab-grown diamonds is technology.

Bernd Munsteiner
SourcingJun 17, 2024
Fantasy Cut Inventor Bernd Munsteiner Dies at 81

Known to many as the “Picasso of gems" who modernized the gem cutting field, he is remembered by his family as going through life with open eyes.

Thomas Markle Jewelers interior
IndependentsJun 17, 2024
Thomas Markle Jewelers to Relocate

The Houston-based family jeweler is relocating its flagship just across the street.

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.

Instore and Chicago Responsible Jewelry Conference Logos
Events & AwardsJun 17, 2024
Instore Show, Chicago Responsible Jewelry Conference to Co-Locate

The partnership, now in its second year, allows CRJC attendees to register for a free Instore show badge.

Weekly QuizJun 13, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Stock image of a gavel
CrimeJun 14, 2024
2 Men Sentenced to Life in 2022 Murder of Detroit-Area Jeweler

In court, Daniel Hutchinson’s loved ones remembered the jeweler as a giver, a role model, and a leader.

Billie Bangle
CollectionsJun 14, 2024
Piece of the Week: Jade Trau’s ‘Billie’ Bangle

Take a walk along this bangle’s diamond “cobblestone” made from round-, pear-, and marquise-cut diamonds.

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.

Graphic with headshots for My Next Question 2024 Las Vegas webinar
Recorded WebinarsJun 14, 2024
Watch: What Happened in Vegas in 2024

The National Jeweler editors discuss the hot topics, best jewels, and current trends that stood out during Jewelry Market Week.

QVC HSN logo
MajorsJun 13, 2024
HSN, QVC Parent Company Faces Delisting

Qurate Retail is in the middle of a turnaround plan as it battles declining sales.

45.07-carat step cut fancy vivid yellow diamond
AuctionsJun 13, 2024
45-Carat Yellow Diamond Withdrawn from Phillips Auction

Signed jewels and period pieces stood out at the sale.

Marie Lichtenberg Scapular necklace
TrendsJun 13, 2024
Amanda’s Style File: For the Fathers

Showcase your dad’s personal style with a piece of fine jewelry for Father’s Day.

The Eden Rose Diamond
AuctionsJun 12, 2024
10-Carat Pink Diamond Sells for $13M at Christie’s

“The Eden Rose” is a fancy intense pink diamond that was appearing at auction for the first time.

Charles & Colvard moissanite ring
GradingJun 12, 2024
IGI to Grade Charles & Colvard Moissanite

The partnership follows the launch of the jewelry company’s B2B moissanite platform.

Bruce Cleaver
SourcingJun 12, 2024
Bruce Cleaver Is Gemfields’ New Chair

The former De Beers CEO will step into the role next month.

Rose cut arch cabochons Columbia Gem House
SourcingJun 12, 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.

Edward Arthur Jewelers logo
IndependentsJun 11, 2024
Edward Arthur Jewelers to Close After 53 Years

Owner Randy Brooks, whose brother opened the Maryland jewelry store in 1971, is retiring.

Greenwich St jewelers pride raffle
IndependentsJun 11, 2024
Greenwich St. Jewelers Is Hosting a Pride Month Raffle

Tickets to win a ring are for sale until June 13, with proceeds going to a trans care nonprofit.

National Jeweler columnist Peter Smith
ColumnistsJun 11, 2024
Vegas Musings: Equal Parts Noise and Inspiration

Fresh off Jewelry Market Week 2024, Peter Smith separates the positive—retail and product innovation—from the positively annoying.

Katherine Jetter CASE Award winning ring
Events & AwardsJun 11, 2024
The 2024 CASE Awards Are Open for Entries

Submissions will be accepted now through July 17.

Swarovski New York City flagship
IndependentsJun 10, 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.

Van Cleef & Arpels 1929 tie necklace
AuctionsJun 10, 2024
Van Cleef & Arpels Necklace From 1929 Sells for $3.6M at Auction

The rare piece went home with a Sotheby’s executive.

Woman shopping
SurveysJun 10, 2024
Consumer Confidence Rises in May Despite Anxiety About the Future

Expectations of a recession rose for the second consecutive month.

Sotheby’s watch executives Sam Hines and Geoff Hess
WatchesJun 10, 2024
Sotheby’s Makes Changes at Top of Watch Division

Sam Hines returns to the auction house as chairman, watches, while Geoff Hess moves up to the role of global head of watches.

Elephants wading in the Okavango Delta in Botswana
SourcingJun 10, 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.

Seymour Holtzman
IndependentsJun 07, 2024
Seymour Holtzman of CD Peacock Dies at 88

He was remembered by loved ones as “an authentic, original American entrepreneur.”

45 carat yellow diamond
AuctionsJun 07, 2024
Phillips to Auction 45-Carat Yellow Diamond

The stone features rare step-cut faceting and is estimated to sell for up to $3.5 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