Pandora Jewelry has released its first quarter 2021 financial update, recording sales of DKK 4.5 billion (AU $ 935 million) amid continued store closures due to the COVID-pandemic 19.
Revenue was 13% higher than the same period in 2020, when the company recorded DKK 4.17 billion (AU $ 867.3 million); sales also increased 13 percent.
However, in the first quarter of 2020, around 90% of Pandora stores were temporarily closed, starting with its Chinese locations from January 22. The next market to close stores was Italy on March 11, followed closely by France and the United States on March 14 and 15 respectively.
In the first quarter of 2021, around 30% of the international Pandora store network was temporarily closed, rising to 35% at the end of March.
Compared to the first quarter of 2019, when its entire store network was open, the company’s revenue fell 6.2% and sales fell 3%.
A cheat sheet accompanying the Q1 update noted, âWhile we haven’t fully turned around, we are clearly seeing the brand recovering. Our brand continues to grow. There are a few key factors behind this such as more distinct and relevant advertising, strong and continued media investments, significantly smarter targeting, solid advancements in merchandising, and overall a much stronger organization.
The cheat sheet also said that the Chinese market “will remain a drag on total revenue growth in 2021 and China’s revenue for the year will be much lower than in 2019”.
The company estimates that a quarter of its network will be temporarily closed in the first six months of 2021, but that these closures will have a “limited impact” in the second half of the year.
Pandora’s full first quarter financial report will be released on May 4.
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