In a notable stride within the subdued jewelry market, Danish jewelry manufacturer Pandora (PNDORA.CO) announced on Monday that strategic marketing initiatives, including collaborations with celebrities like Pamela Anderson, have propelled the company to gain market share in the final months of the previous year.
Despite an overall stagnant market, renowned for its bracelets and charms, Pandora revealed that organic sales experienced a remarkable 12% year-on-year growth from October to December. This surge contributed to an annual growth rate of 8%, surpassing the company’s own full-year projection of 5%-6% declared in early November.
Anders Boyer, the Chief Financial Officer, remarked in an interview, “I’m tempted to say that all of the organic growth is driven by Pandora because, if we look at the few pieces of data that are available, the general jewelry market was down around the world.”
Shares of Pandora, available in over 100 countries, have witnessed an impressive 80% surge over the past year. As of Monday, shares were trading at a 2.6% increase at 0844 GMT, reaching their highest level since June 2016.
Through strategic sponsorships of fashion shows, a concerted effort to secure coverage in fashion magazines, and collaborations with celebrities and influencers, Pandora has successfully attracted a growing clientele to its expansive network of more than 2,500 stores globally, particularly in the United States, its largest market.
Boyer emphasized, “Pandora has, for many years, been the most well-known jewelry brand in the world, and that hasn’t changed. But what has changed is that around a year back, we started adding more and more focus on and investment behind driving brand desirability.”
The CFO highlighted the success of the “affordable luxury” brand’s partnership with former “Baywatch” star Pamela Anderson in promoting its lab-made diamonds collection.
Pandora’s full-year operating profit margin remained at 25%, aligning with its guidance from November, following a fourth-quarter high of 34%. Fourth-quarter revenue reached 10.8 billion Danish crowns ($1.58 billion), up from 9.9 billion the previous year, with earnings before interest and tax (EBIT) rising to 3.7 billion crowns from 3.2 billion crowns.
For the entire year, revenue amounted to 28.1 billion crowns, a surge from 26.5 billion in 2022, while EBIT climbed to 7.0 billion crowns from 6.7 billion crowns.
