US retail remains challenging!
Pandora up by 12% in Q2
According to Pandora their revenue from Pandora owned retail increased 36% which is of 37% in local currency. Like-for-like sales-out growth for Pandora owned concept stores was 10% & revenue from Americas increased 1%.
Like-for-like sales-out growth in the US was 8% driven by more effective promotions and improved in-store execution, revenue in Asia Pacific increased 35% driven by strong sales performances in Australia and China. Full jewellery brand ambitions on track with revenue from Rings, Earrings and Necklaces & Pendants combined up 23% with the three categories representing 23% of Group revenue. While revenue from Charms increased 6% and revenue from Bracelets increased 19%.
Gross margin was 73.9% in Q2 2017 where Q2 2016 had registered of 75.3%, impacted by headwind from currency. Financial guidance for FY 2017 is maintained, including expected revenue of DKK 23-24 billion and EBITDA margin of approximately 38%.
Commenting on the results, Anders Colding Friis, CEO of Pandora, said: “We are pleased with the results for the second quarter delivering double digit top-line growth and continued healthy profitability. Markets like China, Italy, the UK, and Australia performed well, reflecting the significant growth potential for our product offering in both our newer and more developed markets.
We also continue to make strides in improving the quality of our global store network and added net 70 new concept stores during the quarter. The retail environment in the US remains challenging, however, our strategy has delivered a solid improvement in the performance of the concept store network. Additionally, we are rolling out a number of initiatives to strengthen our US business even further.”