A collection featuring many of Disney’s best-known characters will go on sale in Pandora stores starting in November, the company said today as it reported quarterly profit that beat estimates and raised its full-year sales forecast.
The collaboration with Disney -- which will also give Pandora a presence at Disney’s main theme parks in Florida and California -- forms the latest part of the jeweler’s strategy to introduce new products more frequently. Items added in the last 12 months, such as Major League Baseball charms priced at $65, made up about 50 percent of sales during the latest quarter, the Glostrup, Denmark-based company said today.
Pandora shares rose as much as 10 percent to 419.50 kroner in Copenhagen, the steepest intraday gain since May 2013. They traded 8 percent higher at 1:21 p.m. local time, extending this year’s advance to 40 percent.
The jeweler said it now expects revenue in 2014 to exceed 11 billion kroner ($1.97 billion), compared with a previous forecast of more than 10.5 billion kroner. Quarterly net income increased 54 percent to 662 million kroner, more than the 575 million-kroner average of nine estimates compiled by Bloomberg.
“It’s a very strong sales development, particularly in Europe,” Jesper Christensen, an analyst at Alm. Brand A/S, said by phone. The Disney deal is “definitely a good business opportunity,” he said.
Pandora, which sells about 700 types of charms, said the Disney collection will feature sterling silver and 14K gold versions inspired by characters such as Mickey and Minnie Mouse.
“Our consumers and retail partners have been requesting Disney-themed products for years,” Scott Burger, head of Pandora Americas, said in a separate statement.
The 10-year agreement could be “a really good piece of business,” according to Chief Executive Officer Allan Leighton.
“It’s a very big tick in the box in terms of brand that Disney would partner with us,” Leighton said in a telephone interview. “But the fundamental thing is it’s going to be very good for the business.”
Quarterly sales at Pandora rose 32 percent to 2.54 billion kroner, compared with the 2.31 billion kroner that analysts anticipated. All product categories showed “good growth,” with revenue from rings tripling to 273 million kroner.
Pandora anticipates adding more than 275 so-called concept stores this year, compared with the 225 it previously expected. The retailer announced today that it has acquired 27 outlets in the northeastern U.S. from its biggest franchisee in the region in a move to refresh its store network there. The purchase from U.S. jeweler Hannoush is valued at $29 million, it said.
Pandora reiterated its previous forecast that earnings before interest, taxes, depreciation and amortization will widen to 35 percent of sales for the year.
The company also announced today that Peter Vekslund, who is currently its head of finance, will succeed Henrik Holmark as its chief financial officer next year.
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