Fourth quarter revenue increased 14% year-on-year to 9.01 billion Danish crowns ($1.38 billion) from 7.8 billion crowns ($1.2 billion) in the fourth quarter of last year.
It recorded organic growth of 10% compared to 2020 and 15% compared to 2019.
Its sales growth (sales at Pandora owned and operated stores) was 11%.
Annual revenue rose 23% to 23.4 billion Danish crowns ($3.59 billion) from 19 billion crowns ($2.93 billion) in the prior period.
It recorded organic growth of 23% compared to 2020 and 9% compared to 2019.
Its sales growth for the year was 20%.
CEO Alexander Lacik celebrated the company’s “record revenue and sales” in the fourth quarter.
“Our investments in digital are clearly paying off, ‘Moments’ is showing solid growth and we are encouraged by the new ‘Pandora Me’ and ‘Brillance’ product platforms. With this – and with the acceleration of network expansion in 2022 – I am confident that we have all the ingredients to generate sustainable and profitable revenue growth in the years to come,” Lacik said in a press release. .
Pandora has bolstered its digital capabilities in recent quarters, introducing a click-and-collect program – its online shopping, in-store pickup service – and driving online traffic through email marketing. email and platforms like TikTok and Twitch.
The company has also been working to appeal to a younger audience, particularly Gen Z as well as millennial consumers.
To celebrate the relaunch of the “Pandora Me” collection, the company announced the “Pandora Me Collective,” which includes Gen Z influencers like Addison Rae, Donte Colley, Beabadoobee and Cecilia Cantaran.
Singer-songwriter Charli XCX, the group’s only millennial, is also part of the collective.
The collection has done well with its target audience, accounting for 4% of total sales in the fourth quarter.
Pandora broke its sales into “global business units,” or collections, this quarter rather than the usual product categories.
The “Pandora Me” collection saw revenue increase 169% for the quarter and 68% for the full year.
“Pandora Moments,” which includes its signature charm bracelets, saw sales increase 18% in the quarter and 26% for the full year.
Its “Collabs” collection, i.e. collaborations, saw sales decline 15% for the quarter and increase less than 1% for the full year.
Its “Pandora Brilliance” collection, which includes its lab-grown diamond jewelry, has been tested in the UK to positive reception and the company plans to roll it out this year.
Its quarterly sales were 20 million Danish kroner ($3.07 million) while full-year sales were 48 million Danish kroner ($7.38 million).
By sales channel, Pandora-owned retail stores, including the online store, brought in 6.47 billion Danish kroner ($994.3 million) in the fourth quarter, up 17% from the previous quarter. ‘last year.
For the full year, retail sales rose 19% year-on-year to 15.92 billion Danish kroner ($2.45 billion).
Wholesale sales in the fourth quarter rose 7% to 2.29 billion Danish kroner ($352 million). For the full year, wholesale sales rose 35% to 6.7 billion Danish kroner ($1.03 billion)
The company operated 2,619 stores in the fourth quarter, down 71 from the previous fourth quarter.
Pandora said it plans to open 50 to 100 concept stores in 2022.
Online sales in the quarter fell 3% to 2.47 billion Danish kroner ($378.8 million), which Pandora attributed to fewer physical stores opening in 2020. E-commerce sales fell represented 27% of total turnover.
For the full year, online sales increased 9% to 5.98 billion Danish kroner ($918.4 million), representing 26% of revenue.
The United States remained Pandora’s largest market, accounting for 28% of total revenue, up from 25% last year.
Quarterly revenue in the United States totaled 2.52 billion Danish kroner ($387.7 million), up 27% year-on-year.
For the full year, US revenue jumped 56% to 7.03 billion Danish kroner ($1.08 billion).
“U.S. performance relative to 2019 is temporarily supported by stimulus packages and a potential reallocation of consumer spending from travel and entertainment to discretionary goods,” Pandora said.
The company said it sees “many opportunities” for long-term growth, but added that 2022 is subject to uncertainty due to this year’s strong performance.
Although U.S. sales were strong in the fourth quarter, Pandora noted that its long-term goal is to double its U.S. business from 2019 levels.
The company’s performance in China in the fourth quarter continued to be impacted by COVID-19, but Pandora maintained there were still growth opportunities there.
Although physical stores were open, COVID-19 related restrictions resulted in lower traffic. Online sales could not compensate for the drop in in-store traffic.
Its key markets in Europe, including Germany and Italy, saw positive growth with a gradual recovery in sales in Australia, Pandora said.
Looking ahead, Pandora expects organic growth of 3-6% in 2022 with an EBIT margin of 25-25.5%.
Pandora did not give clear guidance on revenue as it will depend on factors such as US market performance and the COVID-19 pandemic.
The company said it assumes the U.S. jewelry market will shrink 10-20% after the strong growth seen in 2021.
The company reaffirmed its target of a compound annual growth rate of 5 to 7% from 2021 to 2023 and raised its revenue forecast for 2023 to 27 billion to 28.1 billion Danish kroner (4.15 billion dollars). to 4.32 billion dollars) from 24.8 billion to 26.2 billion Danish kroner. ($3.81 billion to $4.03 billion).