Pandora Says Online Sales May Boost U.S. Holiday Season Revenueby
Online purchases account for 10 percent of U.K. sales
Jeweler reiterates full-year forecast, shares advance
Pandora A/S said U.S. sales growth may get a boost as the Danish jeweler offers customers the possibility to buy online for the first time over the holiday season.
“I’m curious to see how the online channel will go this holiday season,” Chief Executive Officer Anders Colding Friis said in a phone interview Tuesday. U.S. sales growth slowed to 5.7 percent in the third quarter.
Pandora started its e-commerce platform in the U.S. in the second quarter. Online sales gave a boost to U.K. revenue last year, especially from men buying gifts online, and now represent about 10 percent of sales in that market, the CEO said.
The shares climbed 3.7 percent to 824.5 kroner as of 12:56 p.m. in Copenhagen, reversing an earlier decline and pushing the company’s market value above 100 billion kroner ($14 billion) for the first time. The stock has risen 15-fold since the end of 2011.
The deceleration in U.S. sales came as Pandora broke from its traditional bracelet campaign and instead concentrated on its main product, collectible charms that can be strung together to form a personalized piece of jewelry. While the global market for personal luxury-goods is heading for its weakest year since 2009, Bain & Co. expects jewelry to be 2015’s best-performing category, rising 6 percent.
“This is an issue in the quarter, but I’m not too worried about the U.S. growth outlook as new categories like rings and Disney will help,” Soeren Loentoft Hansen, an analyst at Sydbank, said by phone. “We are also seeing good online growth.”
Net income rose 39 percent to 1.01 billion Danish kroner, Pandora said. Full-year revenue will exceed 16 billion kroner, the Glostrup, Denmark-based company reiterated, with a currency boost of about 10 percent. Pandora anticipates adding more than 375 Pandora-branded stores this year. The jeweler unveiled a collection featuring many of Disney’s best-known characters last year.