Pandora posted record revenue for the second quarter of 2021, with sales in the United States up 63% compared to the same period in 2019.
The company attributed its US performance “exceptionally” to the stimulus measures included in the US bailout.
“We expect there will be a natural correction once the fiscal stimulus is removed,” CEO Alexander Lacik said on an earnings call after the results were released, according to a Alpha transcription search. But, he added, “We have strong indications that Pandora has gained market share.”
Pandora also took over 22 franchise stores in the United States during the first half of the year and another 7 franchise stores in the United States in July.
The company’s range of lab-grown diamonds, called Brilliance, were doing well when it was initially launched in the UK, Lacik said, but did not give further details.
The brand is “a baby at this stage in terms of launch,” he added. “And I think the critical question we ask ourselves, not only of ourselves, but of the consumer, is: is this value equation, which is very different from [our traditional] proposal of charms and bracelets, does this relate to our customers? “
Pandora needs six months to complete a proper assessment, he said, and will then decide to roll out the new line globally. But “so far so good,” Lacik said.
Overall, the Copenhagen, Denmark-based company posted revenue of Kroner 5.2 billion (around $ 819 million) for the quarter, an 84% jump from its second quarter. 2020 affected by COVID-19 and a 13% increase over non-COVID. -19 second quarter 2019.
Online sales accounted for 24% of its revenue in the second quarter, an increase of 132% from the same period in 2019. However, online revenue fell from the second quarter of the year last, because consumers returned to the stores.
On average, 15% of Pandora’s physical stores were temporarily closed during the quarter due to COVID-19. Currently, 8% of its stores are temporarily closed.
Lacik said Pandora’s performance in China remains weak, but the brand is taking steps to reposition itself there.
In response to an analyst question, Lacik praised Luciano Rodembusch, the former Tiffany executive who serve now as Managing Director of North American Operations for Pandora.
“He has extensive, first-rate experience,” he said. “He has international experience, [so he] includes larger scale retail. And not least, he has had great success in recent years at the helm of the Tiffany company in the United States.
Pandora’s full financial report can be viewed here.
(Photo courtesy of Pandora)
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