Pandora delivered a box full of good news Tuesday as the Danish fashion jeweller posted a 68% increase in Q2 operating profit, raised its …
Net profit jumped 54% to DKR662m in the three months to end-June from DKR431m a year ago. Sales leapt 32% to DKR2.54bn.
It cited strong demand in the UK as well as from new markets including Russia.
The company said it now sees 2014 revenue totalling more than DKR11bn from an earlier estimate of DKR10.5bn, with ebitda at around 35% of revenue. It also now expects to open 275 stores this year, up from its previous target of 225.
Meanwhile Pandora’s new strategic alliance with The Walt Disney Co will give the brand a presence in its Disney World and Disneyland resorts. The agreement will begin with the sponsorship of the Wishes Nighttime Spectacular at Magic Kingdom Park in Florida this autumn.
In addition, Pandora, in collaboration with Disney Consumer Products, is creating an original collection of Disney-themed jewellery launching at retail locations from early November.
The new Disney collection of hand-finished sterling silver and 14K gold charms will feature “inspirations from some of Disney’s most beloved characters”. The initial launch will include 25 styles with an additional 16 styles sold at Disney merchandise locations. The collection will also be available in Pandora stores throughout Canada, Mexico, Puerto Rico, Central America and the Caribbean in November.
Pandora also said on Tuesday it would buy 27 Hannoush stores in the US for $29m and would begin operations in the late Q3 to early Q4. The transaction will not impact Pandora’s full-year guidance, the company said.
Initial in-store remodelling costs are estimated at $6m, bringing the total investment to $35m. Following the transaction, Pandora said it intends to re-sell five of the concept stores located outside the Northeast region to existing franchisee partners.
“All regions in the US are achieving good mid-single digit like-for-like sales-out growth or more, apart from the Northeast,” chief executive Allan Leighton said.
“This region is our oldest in the US and we need to refresh the network. This process has started, and will be accelerated by the transaction with Hannoush, which is our biggest franchisee in the Northeast region, representing around 25% of the sales-out in the region”.