The Danish jewelry company’s second-quarter revenue increased 79% to DKK 5.16 billion ($ 815.7 million), from DKK 2.88 billion ($ 455.1 million). dollars) in the second quarter of last year.
“Our strong momentum continued in the second quarter of 2021, and we are pleased to have recorded solid growth compared to 2019,” CEO Alexander Lacik said in a earnings press release.
“Performance in the US and online continued to be strong, and in Europe most of our stores have now reopened. “
The company continues to test its range of laboratory-grown diamonds, ‘Pandora Brilliance’, in the UK and will make a decision on a global launch in late 2021.
The collection generated 18 million Danish kroner ($ 2.85 million) in the second quarter, or 3% of UK revenue.
By sales channel, Pandora-owned retail stores, including the online store, grossed DKK 3.39 billion ($ 537.9 million) in the second quarter, up 37 percent from the previous quarter. ‘last year.
During the second quarter of 2021, around 15% of Pandora’s physical stores were temporarily closed due to COVID-19 restrictions. In the United States, that number was around 6 percent.
The company operated 2,630 concept stores in the second quarter, 84 fewer than in the second quarter of 2020.
Wholesale sales in the second quarter were nearly five times higher than the previous year, up 375% to 1.59 billion Danish kroner ($ 253 million).
Online sales in the quarter fell 16% from 2020, but nearly tripled from pre-pandemic 2019, up 179% year-over-year.
Pandora’s click-and-collect program – its online purchase and in-store pickup service – has gained ground in the United States, accounting for 13% of online sales in the United States.
Pandora has invested in generating traffic online, including email marketing and testing new platforms in the United States like TikTok and Twitch, a video streaming service typically reserved for video games.
About a third of all searches for branded jewelry on Google are for Pandora, the company said.
In the United States, Pandora’s largest market accounting for 34% of total revenue, sales were strong in the second quarter, boosted by stimulus packages.
The United States posted 179% organic growth, with total revenue of DKK 1.77 billion ($ 280.2 million).
Looking ahead, Pandora has again raised its financial forecast for the year.
He expects organic revenue growth to be between 16 and 18 percent, beating his previous estimate of more than 12 percent growth.
The EBIT margin forecast fell from over 22% to 23-24%.
The updated forecast depends on the temporary closure of just 5% of stores in the second half of 2021, up from 5-10% previously.
Currently, around 8% of Pandora stores are temporarily closed or “severely affected” due to COVID-19.
The new guidelines also assume that COVID-19 will not have a major negative impact on its production and supply chain.
Pandora completed its two-year “Program Now” turnaround plan, which aimed to stabilize revenue, increase brand relevance and access, and reduce costs.
It is in the midst of a new strategy, dubbed “Phoenix”, which is focused on sustainable growth. Details of the plan will be shared on its Capital Markets Day in September.