The necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
Hurricanes, Sluggish Retail Hurt Pandora in the Americas
In the third quarter, Pandora’s U.S. sales declined 2 percent in Danish krone and they are down 3 percent so far this year.
Copenhagen, Denmark--The retail environment in the United States remains challenging, particularly for physical stores, Pandora said in reporting its third quarter 2017 results Wednesday.
In the quarter ended Sept. 30, the Danish bead brand’s U.S. sales totaled $174.2 million, compared with $177.8 million in Q3 2016, a decline of 2 percent in Danish krone (DKK) but an increase of 4 percent in local currency.
Pandora said any growth in sales was driven primarily by the opening of new stores, including the franchise stores it acquired during the quarter.
For the first nine months of the year, revenue was down 3 percent in the U.S. in both DKK and the dollar.
The company described the retail environment in the United States as “challenging,” with its online store seeing sales growth but physical stores continuing to struggle, and noted that “affordable” jewelry brands are being “increasingly promotional.”
It also noted that it lost about $7.8 million due to the hurricanes that hit the United States and Puerto Rico in Q3 and expects that loss to grow to about $23.4 million for the year.
In recent years, Pandora has pulled its product out of jewelry stores--including hundreds of independents in the U.S.--while also buying back concept stores once controlled by franchisees and opening more company-owned stores in order to, it has said, have better control over the brand.
This year in the U.S., Pandora purchased 50 concept stores from franchisees between Jan. 1 and Sept. 30.
Globally, Pandora’s revenue was up 13 percent year-over-year in the third quarter to $809 million.
Gross margin slipped from 75.1 percent to 74.2 percent.
EBITDA (earnings before interest, taxes, depreciation and amortization) was $306 million, with an EBITDA margin of 37.8 percent, down from an EBITDA margin of 39.9 percent last year.
Pandora said the drop was mainly due to unfavorable currency fluctuations and higher marketing expenses.
The Asia-Pacific region is becoming an increasingly important market for Pandora. The company’s third quarter results show that in the first nine months of 2017, the Americas accounted for 32 percent of global revenue, down from 36 percent in the same period last year, while Asia Pacific was at 23 percent, up from 19 percent last year.
“The results in the third quarter were in line with our expectations, with the underlying development showing positives as well as negatives,” CEO Anders Colding Friis said. “Most of our major growth markets--Germany, Italy, Australia and China--continued to show strong performance
The Latest
The two organizations will host a joint event, “Converge,” in September 2025.
Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
The Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
The announcement came as the company reported a 23 percent drop in production in Q1.
The three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
Inspired by the Roman goddess of love, the designer looked to the sea for her new collection.
The selected nine organizations have outlined their plans for the funds.
The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
Emmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
Ruser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
The “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
The overhaul includes a new logo and enhanced digital marketplace.
The money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
A new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
The move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
From now through mid-May, GIA will be offering the reports at a 50 percent discount.