It seems that jewelry is going through a golden moment, even when almost all of its production is in silver. A pun to introduce the first quarter accounts of Pandora, the world’s largest company in the industry. Therefore, in the first three months of 2022 Pandora recorded strong organic growth + 21% compared to 2021 and + 18% compared to the corresponding period in 2019. The clarification is useful, because 2020 and 2021 were marked by the pandemic and, therefore, from an uneven sales trend. According to the company, it is all thanks to the strategy decided by the top, which also has a name (the strategy, not the top): Phoenix. It is essentially based on four principles: brand development, design, customization and focus on the US and China.
We are very satisfied with the excellent start of the year, with the revenue record in the first quarter. All of our product platforms support growth in Q1, which means that our ability to continuously deliver innovation pays off. The execution of the Phoenix strategy continues at a high pace and I am convinced that we still have many opportunities for growth ahead of us. Over the past two years, we have invested in building a strong organization, and this is increasingly visible in the numbers and in the way we lead the company.
Alexander Lacik, President and CEO of Pandora
In detail, the Pandora ME platform grew by 132% compared to the 2021 quarter and reached a 3% share of sales. Sales increase in the United States by 7% (62% compared to 2019) and with a plan with the acquisition of 32 franchise stores located mainly on the West Coast, as well as the start of a new partnership with Macy’s. On the other hand, however, the data in China were not positive and all business activities with Russia and Belarus were suspended: these are markets that represent approximately 1% of revenues. In the rest of Europe, on the other hand, the performance of the main markets marks double-digit positive organic growth compared to 2019 (UK and Italy both grew by over 30%). Online sales also performed well, also thanks to last year’s lockdown effect.
However, the company also reports some critical points, due to the negative impacts of the war, the increase in costs, higher interest rates and the aftermath of Covid-19. For 2022, in any case, organic growth is expected at 4-6% (previously 3-6%), while the guidance of the Ebit margin (the gross margin) remains unchanged at 25.0-25.5%. But, Pandora warns, financial guidance for 2022 is subject to high uncertainty.
