Pandora on track for 2012 despite revenue drop
Pandora released its interim Q1 2012 results on May 8 with the fashion jewellery brand reporting revenue of 1,424mDKK (£153.8m), a decrease of 18.4% compared to the same period last year.
However, the brand stated that this decrease was in line with expectations and cited its stock balancing campaign - which allowed retailers globally to return discontinued products - as one of the reasons for decreased revenue.
Speaking to Retail Jeweller CEO Bjorn Gulden said that he felt the brand was on the right track for 2012 despite the revenue drop.
“I feel positive that we are on the right track. We are focusing on helping stores that stock Pandora to grow their business as well as opening new stores. We expect to open 200 stores in the next year, with 135 of those opening in our new key markets - Italy, France, Asia and Russia.”
The brand also realigned its price architecture and those implementations did not come into affect until late in the first quarter.
In the UK, concept stores that have been operating for 12 months or more saw like-for-like sales decrease by 15.6%, which Pandora believes is a result of heavy discounting among competitors.
Despite this, Gulden is confident the UK market is still buoyant.
“The UK is definitely on the right track,” he said. “Initial feedback on the Spring/Summer range has been positive and it has benefited from the global initiatives the company has put in place.”
Pandora had a difficult end to 2011, after being forced to issue a profit warning back in August, a move which saw share prices fall by 65%.