Pandora Jewelry. Shutterstock.
Danish jewelry maker Pandora said on Tuesday that a strong performance in the United States spurred rapid second-quarter sales growth, but sales in China fell.
Pandora, which aims to strengthen its brand in the world’s two largest economies, said its total comparable sales in April-June jumped 7% from the same quarter of 2019 before the pandemic.
In the United States, quarterly sales more than doubled from a year ago and increased 63% from 2019 as massive government stimulus and Covid-19 vaccinations fueled spending in goods and services.
Pandora said it saw indications it was gaining more market share in the United States, its largest market, but warned that the strong growth would subside in the second half of the year.
“We lowered expectations on US growth from the first half of the year, then we raised expectations in Europe when the stores reopen and we see that happening,” Managing Director Alexander Lacik told Reuters in an interview. .
Pandora shares, which have gained around 25% this year, fell around 1% at the start of trading.
“The question arises as to how long can growth in US operations offset continued weakness elsewhere, and can Pandora stabilize its European operations to coincide with slower US growth?” Handelsbanken said in a research note.
Sales in China, the world’s largest jewelry market, fell 13% in the second quarter compared to 2019.
“It will take time, so it’s not a quick fix. The first attempt to try to turn the tide will take place later this year, ”Lacik said, adding that Pandora would announce more details on its brand repositioning in China on its capital markets day in September.
Earlier this month, Pandora raised its sales and profit margin forecast for the full year as fewer stores are expected to close due to Covid-19 than initially expected.
Pandora also announced a new share buyback program on Tuesday, the latest European company to buy back shares following a strong earnings season.
By Stine Jacobsen; editor: Christopher Cushing and Susan Fenton
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