Financials

Hurricanes, Sluggish Retail Hurt Pandora in the Americas

FinancialsNov 09, 2017

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.

20171109_Pandora-gift-set.jpg
Pandora said in its third quarter earnings report it launched its Christmas collection ahead of schedule, in early October, in order to make Q4 as strong as possible. Pictured here is one of the gift sets the brand is offering this holiday season, the Rose Elegance. It retails for $379.

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

… whereas the retail environment in the U.S., combined with currency headwind from the U.S. dollar, continued to be a challenge.”
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Cristiano Ronaldo and Stephanie Gottlieb Ring
TrendsAug 13, 2025
Cristiano Ronaldo Proposes With Gigantic Oval-Cut Diamond

Model Georgina Rodríguez received a rock of an engagement ring, with her diamond estimated to be 35 carats, experts say.

International Colored Gemstone Association logo
SourcingAug 13, 2025
ICA Names 2025 Board of Directors

The board elected 9 new directors at its recent ICA Congress in Brazil.

Whiskey Barrel Ring
TrendsAug 13, 2025
Colorado Jeweler, Whiskey Maker Collab on Ring Giveaway

Three winners will receive a custom ring from Honest Hands Ring Co. inlaid with a piece of history from Denver-based distillery Stranahan’s.

rio-article photo-diamond.jpg
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine Jewelry

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

People shopping in a mall
SurveysAug 13, 2025
These Are The 25 Hottest Retailers, Says NRF

JD Sports and Wawa were among the fastest-growing retail companies in the U.S. last year.

Weekly QuizAug 08, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Columbia Gem House Winza sapphires and rubies
SourcingAug 13, 2025
Columbia Gem House Launches Winza Sapphires, Rubies

The new inventory, all untreated, features vibrant hues and unique bicolor combinations.

Gemfields Faberge
SourcingAug 12, 2025
Gemfields Sells Fabergé for $50M

Acquired by a tech investor, the historic brand will continue to focus on jewelry, accessories, and timepieces.

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.

Shipping containers on a ship
Policies & IssuesAug 12, 2025
Higher Tariff on Chinese Imports Paused for 90 Days, Trump Says

President Donald Trump issued an executive order extending the pause on higher tariffs to November as negotiations with China continue.

Jacquie Aiche Thunderbird Slab Collection Campaign
CollectionsAug 12, 2025
Jacquie Aiche’s New Collection Harnesses the Energy of the Thunderbird

The “Thunderbird Slab” collection features a thunderbird motif as a symbol of power, protection, and boundless possibility.

Duvall O’Steen and Jen Cullen Williams
ColumnistsAug 12, 2025
Creative Connecting: How to Take a Better Headshot

Columnists Jen Cullen Williams and Duvall O’Steen share tips on how to elevate your professional image.

Vigil for slain Wheat Ridge, Colorado jeweler Peter Damian Arguello
CrimeAug 11, 2025
Man Convicted of First-Degree Murder in Death of Colorado Jeweler

Peter Damian Arguello, a jeweler in the Denver suburb of Wheat Ridge, was found dead inside his store in November 2023.

Lisa Bridge
IndependentsAug 11, 2025
Lisa Bridge to Depart Ben Bridge Jeweler

The retailer, owned by Berkshire Hathaway, is becoming part of the Berkshire Hathaway Jewelry Group with Helzberg.

Bethenny Frankel
Events & AwardsAug 11, 2025
Bethenny Frankel to Give Keynote at CBG’s Experience Show

The Continental Buying Group’s 2025 Tampa Experience Show is slated for Sept. 8-10.

Nora Kühner fashion design consulting trend forecast colors 2027
EditorsAug 11, 2025
The Colors Expected to Be On-Trend in a Couple Years

Associate Editor Lauren McLemore recently attended a fabrics trade show where a trend forecaster shared her predictions for summer 2027.

Jewellers for Hope charity event
Events & AwardsAug 08, 2025
GJEPC’s Jewellers for Hope Celebrates 10 Years of Fundraising

The organization has raised more than $1.3 million for charity since its inception.

Rahaminov Diamonds Emerald-Cut Diamond Bezel Bangle
TrendsAug 08, 2025
Piece of the Week: Rahaminov Diamonds’ Bezel Bangle

The brand’s latest iteration of a bezel-set diamond bangle features clean lines and a timeless design for a new modern silhouette.

Black and white photo of Tony Bennett near a microphone
WatchesAug 07, 2025
Bulova’s New Collection Honors Tony Bennett

The first watch in the series commemorates his participation in the Civil Rights movement, marching from Selma to Montgomery in 1965.

Sapphire page in Chatham’s “Ultimate Lab-Grown Catalog”
Lab-GrownAug 07, 2025
Chatham Releases Catalog for Loose Lab-Grown Gemstones

The catalog contains a complete listing of all the loose gemstones in stock, as well as information about the properties of each stone.

Rembrandt Blue Jay, Hummingbird, Cardinal Bird Charms
TechnologyAug 07, 2025
Rembrandt Charms Debuts New Website, Bird Charms

The company added a retailer dashboard to its site and three new birds to its charm collection, the cardinal, blue jay, and hummingbird.

Shipping containers on a ship
Policies & IssuesAug 06, 2025
Tariff on India to Rise to 50%, Trump Says

An additional 25 percent tariff has been added to the previously announced 25 percent.

Claire’s storefront
MajorsAug 06, 2025
Claire’s Files for Chapter 11 Bankruptcy Again

The jewelry and accessories retailer plans to close 18 stores as part of the proceedings.

Smith & Son Jewelers storefront Springfield Massachusetts
IndependentsAug 06, 2025
Smith & Son Jewelers to Close 107-Year-Old Location

Its Springfield, Massachusetts, store is set to close as owner Andrew Smith heads into retirement.

Zahn-Z Beluga Spout Grey Spinel Ring and Beluga Spout Mandarin Garnet Ring
CollectionsAug 06, 2025
Zahn-Z Swims With Whales in ‘Beluga’ Collection

Designer Hiba Husayni looked to the whale’s melon shaped-head, blowhole, and fluke for her new chunky gold offerings.

Paola De Luca presenting Trendbook 2026+ at Vicenzaoro
TrendsAug 06, 2025
Paola De Luca to Release Trendbook 2027+

She will present the 23rd edition of the trend forecasting book at Vicenzaoro on Sept. 7.

Omar Roy mugshot
CrimeAug 05, 2025
Report: Suspect Arrested in 1992 Murder of Miami Jeweler

Omar Roy, 72, was arrested in connection with the murder of jeweler Dionisio Carlos Valladares.

Mignon Faget Beyond Katrina Pendant and Beyond Katrina Pin
CollectionsAug 05, 2025
Mignon Faget Commemorates 20th Anniversary of Hurricane Katrina

The New Orleans-based brand’s “Beyond Katrina” jewels honor the communities affected by the storm.

×

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