Articles and News
Pandora CEO Shares How the Jewelry Brand Thrived During Economic Slowdown February 22, 2023 (0 comments)
Copenhagen, Denmark--Pandora announced impressive year-end results with record-high revenue of DKK 26.5 billion ($3.8 billion), causing a surge in the company's shares, which rose by over 10% following the earnings announcement on February 8.
[Image via Pandora]
These results are particularly notable given the current economic and geographic challenges that the company has had to face.
According to a news report, the company sells 10 million charm bracelets annually, with charms making up around 70% of its earnings. Half of Pandora's customers are returning customers; the remainder of those buying charms purchase a gift for loved ones.
The company positions itself as an "affordable luxury," increasingly appealing as a "small splurge" during economic hardship. Pandora's CEO Alexander Lacik believes a recession may boost this trend as consumers hold back on expensive purchases.
The report noted that Pandora is ramping up collaborations with other brands, including Marvel, which brought in 2.4% of total revenue in 2022. Pandora also opened 88 new concept stores last year, 32 in the US, and 130 new shop-in-shops, branded areas within larger stores.
The company's initial guidance for 2023 is -3% to 3% organic growth, with Lacik predicting that the "most likely outcome is the midpoint in that range."
Learn more in this news report.