Lab-Grown

Pandora’s Moving from Natural to Lab-Grown Diamonds

Lab-GrownMay 04, 2021

Pandora’s Moving from Natural to Lab-Grown Diamonds

The company announced the news alongside its first-quarter results, posting strong revenue in the U.S. market.

20210504_Pandora header.jpg
The “Pandora Brilliance” lab-grown diamond collection debuts in the United Kingdom this week before rolling out to other key markets in 2022.
Copenhagen, Denmark—Pandora is moving into the lab-grown diamond jewelry market, starting with the launch of a new collection in the United Kingdom this week.

The company announced Tuesday that it will no longer be using natural diamonds in its jewelry amid its push for “sustainably created” and affordable products.

The “Pandora Brilliance” collection of lab-grown diamond jewelry will be introduced to the U.K. market Thursday and is expected to expand into other markets in 2022.

“They are as much a symbol of innovation and progress as they are of enduring beauty, and stand as a testament to our ongoing and ambitious sustainability agenda,” CEO Alexander Lacik said Tuesday in announcing the new line. “Diamonds are not only forever, but for everyone.”

Pandora Brilliance includes rings, bangles, necklaces and earrings, each featuring a lab-grown diamond hand-set in sterling silver or 14-karat yellow or white gold. The collection’s motif is a take on the infinity symbol.

“The concept is about infinite possibility—that the future is yours to shape,” said Pandora.

Actress Rosario Dawson and model Ashley Graham will promote the line in the U.K., Professional Jeweller reported.

The pieces start at £250 ($346) and each stone ranges from 0.15 to 1 carat.

Pandora has been working toward greater sustainability and recently put a lot of money behind this goal, tying borrowing costs on a new €950 million credit facility to reducing its carbon footprint and using recycled metals. It set goals of becoming carbon neutral in its own operations and using only recycled silver and gold by 2025.

The company said the Pandora Brilliance collection has been certified as a CarbonNeutral product by The Carbon Neutral Protocol, a certification that covers the jewelry as well as packaging and transportation.

Pandora said the diamonds in the Brilliance collection are currently grown with more than 60 percent renewable energy. The collection is expected to be created with 100 percent renewable energy by its global launch.

The news about the lab-grown diamond collection came as the company announced its first-quarter results.

Pandora posted strong first-quarter revenue as online sales surged and select physical stores reopened. 

First-quarter revenue was up 8 percent year-over-year to 4.5 billion Danish kroner ($729.9 million) compared with 4.17 billion Danish kroner ($606.5 million) in the first quarter last year.

Quarterly like-for-like sales were up 36 percent year-over-year. (Like-for-like represents true comparable sales from stores that have been open for at least a year, excluding currency fluctuations.)

 Related stories will be right here … 
“We have had a good start to 2021, not least considering that many of our stores have been closed,” said Lacik in a press release about the results. 

“Performance in the U.S. and online continues to be strong, and we keep investing in building brand desirability, digital capabilities and operational excellence.”

By product category, sales of charms and bracelets both rose 7 percent in the quarter.

Ring sales rose 9 percent while earring sales were up 10 percent. Sales of necklaces and pendants were up 9 percent.

By sales channel, Pandora-owned retail stores, including the online store, brought in 2.96 billion Danish kroner ($478 million) in the first quarter, up 13 percent from the previous year.

Overall traffic into its physical stores was down by around 50 percent year-over-year, though Pandora noted the conversion rate is high.

In the United States and Australia, as physical stores began to reopen, store traffic was positive. It was the same story for its U.K. stores, which reopened in early April.

During the first quarter, around 30 percent of Pandora’s physical stores were temporarily closed due to COVID-19 restrictions, growing nearer to 35 percent by the end of March.

The company operated 2,659 stores as of the first quarter, 87 fewer when compared with the previous first quarter. 

It has 543 fewer other points of sale year-over-year, fueled by closures in the U.S. and Spain and the termination of 230 accounts with Signet-owned Jared the Galleria of Jewelry.

Wholesale sales in the first quarter were up 3 percent to 1.37 billion Danish kroner ($220.7 million). 

Online sales surged 136 percent year-over-year to 1.42 billion Danish kroner ($229.1 million) and accounted for 31 percent of total revenue.

Pandora invested in driving online traffic, including email marketing and trying out new platforms in the U.S. like TikTok and Twitch, a live streaming video service usually reserved for video games.

In the U.S., Pandora’s largest market accounting for 31 percent of total revenue, sales were strong in the first quarter following Valentine’s Day and a rise in demand for discretionary goods due to stimulus checks.

Quarterly revenue in the U.S. totaled 1.39 billion Danish kroner ($224.9 million), up 49 percent year-over-year.

Looking ahead, Pandora upped its financial guidance for the fiscal year. 

It expects organic revenue growth to top 12 percent, compared to its previous estimate of about 8 percent. 

Guidance for EBIT margin rose to about 22 percent from about 21 percent.

The updated guidance is dependent on 20-25 percent of stores being temporarily closed during the first half of 2021, compared with prior guidance of 25 percent. In the second half of the year, that number is expected to drop to 5-10 percent. 

Temporary store closures are expected to negatively impact organic growth by 6 percent for the full year.

The company does not expect to see any major changes to its overall store network.

Pandora has completed its two-year “Programme” Now turnaround plan, which aimed to stabilize its topline, increase brand relevance and access, and reduce costs.  

It is set to move onto a new strategy, dubbed “Phoenix,” that is focused on sustainable growth. Details of the plan will be shared during its Capital Markets Day in September.
Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

Macy’s Herald Square store
MajorsJul 16, 2024
Macy’s Ends Buyout Talks

The retailer will not be making a deal with Arkhouse Management and Brigade Capital Management, opting to focus on its turnaround plan.

Crime police cars
CrimeJul 16, 2024
Thieves Nab $500K in Jewelry in Calif. Group Smash-and-Grab

The Berkeley robbery follows two other Bay Area robberies involving multiple suspects, one in May and one in June.

National Jeweler columnist Lilian Raji
ColumnistsJul 16, 2024
The PR Adviser: Awareness Starts With Your Online Store

Lilian Raji discusses the importance of having an intentional website design that aligns with your brand or store’s goals.

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.

Catbird The Met collection
CollectionsJul 16, 2024
Catbird Debuts New Met Collection

It’s the second collaborative offering from the jewelry brand and the New York City art museum.

Weekly QuizJul 11, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Craftsman holding Pomellato Arengario necklace
MajorsJul 16, 2024
Pomellato Acquires Valenza Setting Lab

The Kering-owned brand bought VSL to reinforce its manufacturing capabilities.

Ewa Abrams, Kering’s new president for the Americas
MajorsJul 16, 2024
Kering Appoints New President for Americas Region

The luxury conglomerate promoted General Counsel Ewa Abrams to the role, succeeding Laurent Claquin.

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.

Tanzanite ring
MajorsJul 15, 2024
Signet Falls 11 Spots on NRF’s ‘Top 100’ Retailers List

The jewelry giant came in at No. 67 on the list, down from No. 56 last year.

 2025 Gem Awards logo
Events & AwardsJul 15, 2024
Nominations Are Open for the 2025 Gem Awards

Submissions in the categories of Jewelry Design, Media Excellence, and Retail Excellence will be accepted through Aug. 23.

Sunlit’s Sun Goddess Supreme Ring and Pyramid Rutilated Quartz Necklace
Events & AwardsJul 15, 2024
NY Now Expands Emerging Designer Segment for Its Summer Market

Curated at Luxury Lifestyle will build on the former initiative, the Emerging Fine Jewelry Designer Incubator.

Collage of Caitlin Albritton and her jewelry
Events & AwardsJul 15, 2024
Halstead Announces 2024 Grant Winner

Caitlin Albritton won the 19th annual Halstead Grant for emerging jewelry businesses.

Myne London
CollectionsJul 12, 2024
Myne London to Support Malala Fund

The emerald supplier will donate a percentage of sales from its “Star Power” earrings to the nonprofit in support of girls’ education.

The Jewelry Symposium logo
Events & AwardsJul 12, 2024
The Jewelry Symposium Is Looking for Speakers

TJS is seeking jewelry manufacturing and technology experts to speak at its 2025 event.

Sculptural Freeform Earrings
CollectionsJul 12, 2024
Piece of the Week: Marrow Fine’s ‘Sculptural Freeform’ Earrings

The earrings were inspired by the landscape at Joshua Tree and Jean Arp’s abstract sculptures.

Madeline Fraser Gemist
EditorsJul 11, 2024
Q&A: Gemist CEO Madeline Fraser on Jewelry Visualization Technology

Fraser shares why she decided to shift from a direct-to-consumer retailer to a B2B technology company.

Jewelers of America learning workshop Providence logo
Events & AwardsJul 11, 2024
JA to Host Next Learning Workshop in Providence

The one-day workshop will be held July 17 at the Rhode Island School of Design.

Jewelers International Showcase Logo Statue
Events & AwardsJul 11, 2024
Registration Now Open for JIS Fall 2024

The jewelry trade show will take place in Miami Oct. 6-9.

Kyle Kuzma, D’Angelo Russell, Jalen Green, Jaime Jacquez Jr., Kevin Love, Josh Hart, and Seth Curry
MajorsJul 11, 2024
David Yurman Names 7 NBA Players as Brand Ambassadors

The partnership reinforces David Yurman’s position as a leader in men’s jewelry, said the company.

U.S. Customs and Boarder Protection Paperwork
CrimeJul 10, 2024
US Customs Seizes $10M in Counterfeit Jewelry

Officers intercepted three packages within 24 hours containing fake goods claiming to be from various luxury brands.

Matturi Fine Jewelry totem jewel
Events & AwardsJul 10, 2024
IAC’s Gold and Diamond Conference to Focus on ‘Expanding Horizons’

The 14th annual conference will host panels on cross-sector collaboration, industry sanctions, and more.

Immediate Connections
Events & AwardsJul 10, 2024
Women’s Art Center of the Hamptons to Host Jewelry Exhibition

“Immediate Connections” will be on view from July 18-21.

Navneet Gems salt & pepper sapphires
SourcingJul 10, 2024
Navneet Gems Launches Salt-and-Pepper Sapphires

Sourced from Tanzania, the stones feature a unique hematite inclusion.

Buccellati butterfly brooch
TrendsJul 10, 2024
Amanda’s Style File: Slither and Fly

Snakes, birds, and bugs are all the buzz this summer.

Peter Smith
ColumnistsJul 09, 2024
11 and ½ Thoughts on Leadership

From prioritizing “big rocks” to practicing transparency, Peter Smith explores what it takes to be an effective leader.

John Hardy bracelet and Wölffer Estate Summer in a Bottle rosé
CollectionsJul 09, 2024
John Hardy Toasts to Wölffer Estate With New Collection

The capsule collection is inspired by the Hamptons vineyard’s Summer in a Bottle rosé.

Fuli Gemstones peridot The Curious Gem
SourcingJul 09, 2024
The Curious Gem Now Carrying Fuli Peridot

The U.K.-based online supplier will offer calibrated stones under 1 carat.

×

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