Danish Pandora sales up despite dull market – CFO
The Danish jewellery giant Pandora said that adopting marketing tactics such as celebrities’ campaigns helped it gain a market share late last year despite a flat overall market, Reuters reported on Monday.
The company’s organic sales increased by 12 per cent year on year (YoY) from October to December 2023, boosting annual growth to 8 per cent and exceeding the company’s full-year forecast of 5-6 per cent in early November, according to the company’s statement on Sunday.
“I’m tempted to say that all of the organic growth is driven by Pandora because if we look at the few pieces of data that are available, the general jewellery market was down around the world,” Chief Financial Officer Anders Boyer said in an interview.
The company’s shares rose to 80 per cent in 2023. On Monday, shares were trading at their highest at 2.6 per cent at 0844 GMT.
The company’s marketing tactics which focused on sponsoring fashion shows, getting stories into fashion magazines, and working with celebrities helped attract more sells in more than 2,500 stores worldwide, especially in the U.S. in which the brand is very popular.
“Pandora has for many years been the most well-known jewellery brand in the world and that hasn’t changed. But what has changed is that around a year back we started adding more and more focus on and investment behind driving brand desirability,” Boyer added.
Moreover, after reaching 34 per cent in the fourth quarter, the company’s operating profit margin for the full year reached 25 per cent, in line with its November guidance.
The company’s revenues increased to 10.8 billion Danish crowns ($1.58 billion) in the fourth quarter, up from 9.9 billion in the same period last year. Earnings before interest and tax (EBIT) also increased, rising from 3.2 billion to 3.7 billion crowns.
Revenue for the entire year increased to 28.1 billion crowns from 26.5 billion in 2022, and EBIT increased to 7.0 billion crowns from 6.7 billion crowns.
($1 = 6.8203 Danish crowns)
