Following the release of Q1 2022 data, Pandora Group has revised its guidance and now expects sales growth of between 4% and 6% for the year.
Pandora posted record first-quarter sales, up 21% on an “organic basis” year-over-year, a similar metric to total store sales. The company generated total sales of 5.7 billion crowns (A$1.15 billion) in sales for the period beginning in January and ending in March.
In the first quarter of 2021, Pandora reported total revenue of 4.5 billion crowns (910 million Australian dollars).
The positive numbers come despite the continued burden of the COVID pandemic in some locations, as well as Pandora’s response to the invasion of Ukraine in late February.
Pandora closed all scores in Russia, Belarus and Ukraine as a result of the dispute, however, revenue from these sites accounted for approximately 1% of total global sales in 2021.
Pandora CEO Alexander Lacik said the company sees more growth on the horizon.
“We are very pleased with the good start to the year, generating record first quarter sales,” said Pandora CEO Alexander Lacik.
“I am encouraged by the growth opportunities available to us. Over the past two years, we’ve invested in building a stronger organization, and it increasingly shows in the numbers and how we drive the business forward. »
Not everyone is so optimistic about the market outlook for Pandora, especially when it comes to online sales.
Free trade investment writer Gemma Boothroyd spoke with professional jeweler after the first quarter figures were released and said the company faces significant competition.
“Personalised products are the crown jewel of Pandora. But they could also turn out to be the thorn in the side,” she said.
“The past few years have ushered in a host of customizable jewelry marketplace platforms. The likes of Etsy and Amazon Homemade have made it increasingly easy to purchase bespoke jewelry online. Historically, jewelers would have struggling to gain scale in their sales and marketing efforts without a showcase or gallery showcasing their creations.
“But online marketplaces and social media have changed the game, and that’s proving to be a challenge for jewelry giants like Pandora.
“It’s not that things are bad at Pandora – the company’s revenue is up from last year and pre-pandemic levels as well.
“But while its online sales have doubled from 2019, they are now 17% below 2020 figures. Frankly, the company’s 2019 benchmark comparison for online sales was surprisingly low being given that the company was relatively slow to digitize.
Pandora remains based in Denmark and has expanded its reach to more than 2,700 stores in 100 countries around the world. The company employs approximately 27,000 people.
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