Pandora Sales up Nearly 93%

Everyone’s favorite jewelry company, Pandora, reported a 92.6 percent sales increase to 6.67 billion Danish krones ($1.26 billion) for 2010. Net profit rose 86.2 percent to 1.87 billion Danish krones ($355.6 million) for the year.

By region, the Danish company that specializes in affordable charms reported stunningly strong sales growth. Its business in the Americas, its strongest market with 43.7 percent of total sales, grew by 87 percent. Europe, its second largest market with 43 percent of total sales, had the strongest growth for the year at 137 percent. Sales in the Asia Pacific grew by 28.3 percent and constituted 13.4 percent of total sales

Revenue from charms grew by 82.5 percent for the year and silver and gold charm bracelets revenue grew 50.3 percent. This past year the company was trying to strengthen sales in its rings and other jewelry and it has shown some good results. Ring sales grew by 281.8 percent and other jewelry grew by 185.2 percent. Together these two product groups represented 18.7 percent of revenue in 2010—up from 11.6 percent in 2009.

Gross margin was 70.9 percent, slightly below the gross margin of 71.4 percent in 2009, primarily due to increase in commodity prices not being entirely offset by price increases, the company said.

“2010 was a remarkable year in Pandora’s history, and I am both proud and very satisfied with the achievements we have accomplished together with our partners,” said Mikkel Vendelin Olesen, Pandora’s CEO. “While entering new markets that will contribute to our long-term development, we experienced strong growth in our existing markets and across all product categories. We increased branded sales and strengthened the awareness and perception of the Pandora brand among our target audience. And we successfully integrated new businesses into the group as well as new systems and procedures to prepare our organization for future growth. At the same time we listed the company on the stock exchange without losing momentum in our daily operations.”

For 2011, Pandora said it expects a revenue increase of no less than 25 percent.

At the end of 2010, PANDORA employed 4,985 people worldwide and sold its jewelry and other branded products through 10,618 points of sale in more than 55 countries on six continents.