Danish jeweller Pandora posted a surge in its APAC sales for the second-quarter period, as the Copenhagen-based firm signalled a shift toward the Chinese market to fight trading headwinds in the U.S.
The jewellery maker known for its customisable charm bracelets said total revenue hit DKr4.83bn ($770m) – a 12 per cent gain on the previous year, but short of analysts’ expectations for DKr4.91bn, reported the Financial Times.
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Net profit for the period dipped from DKr1.2bn to DKr1.1bn – analysts had expected it to be flat, said the news source. EBITDA reached DKr1.61bn, compared with an expected 1.74 billion.
“We are pleased with the results for the second quarter delivering double digit top-line growth and continued healthy profitability,” said Anders Colding Friis, chief executive of Pandora.
By market, Pandora said the US “remains challenging,” despite a comparable sale increase of 8 per cent. The EMEA increased 10%, driven by the UK, while APAC (China and Australia) revenues grew 34 per cent.
“Markets like China, Italy, the UK, and Australia performed well, reflecting the significant growth potential for our product offering in both our newer and more developed markets. We also continue to make strides in improving the quality of our global store network and added net 70 new concept stores during the quarter.”
The news follows on from Pandora’s first quarter period announced earlier in the year where it was reported that China revenues grew 91% in local currency.
As a result, the company elevated its strategic focus in China to open 60 Pandora-branded stores in the nation this year, up from its previous estimate of 50.