Danish jewelry brand Pandora is seeing sales return back to pre-pandemic levels with strong demand in the U.S. market driving sales. Sales in China, however, are continuing to lag.
Pandora’s sales in April-June improved by 7 percent compared to the same quarter in 2019 as the company worked to drive growth in two of its biggest markets.
Quarterly sales in the U.S. market more than doubled, increasing by 63 percent compared to 2019. The growth came as a result of stimulus support from the government and an increase in vaccination rates, which boosted consumer confidence. As a result, the company expects its U.S. business to continue to grow, but it anticipates sales to slow down in the second half of 2021.
“We have dampened the expectations on the U.S. growth versus the first half and then we have raised expectations in Europe when the stores reopen and we are seeing that play out,” Chief Executive Alexander Lacik told Reuters.
Meanwhile, sales in China, the world’s largest jewelry market, declined by 13 percent in Q2 compared to 2019.
“It will take time so this is not a quick fix. The first attempt to try to turn this around is going to happen later this year,” Lacik said, adding that the company plans to reposition its branding in the Chinese market later this year.
While the company is currently in a position where growth in the U.S. market is offsetting a slowdown in sales in other international markets, it remains to be seen whether the company can stabilize its business in Europe to coincide with a sales slowdown in the U.S.
Pandora’s shares have improved by 25 percent this year. The company today announced its new share buyback program, making it the latest European business to repurchase stocks on the heels of a strong earnings season.