The Danish jewellery brand Pandora Jewelry (Pandora) recently released its second-quarter earnings report for 2017. The data shows that its sales increased by 12% year-on-year to DKK 4.725 billion (approximately US$ 766 million). Net profit fell by 10.3%. DKK 1.1 billion (approximately 174 million U.S. dollars).
Pandora stated that the decline in net profit was mainly attributable to the acquisition of stores worth a total of DKK 76 million. In addition to this, the company’s financial performance was excellent. The sales of all major regional markets have increased to varying degrees and performed best. The Asia-Pacific market, including China and Australia, has increased by 35%. The Chinese market was the biggest contributor, with sales in the first quarter soaring by 91%.
Pandora entered the Chinese market only in 2015. Although the market size in China is still not as large as that of Europe and the United States, its outstanding performance undoubtedly indicates that China is emerging as Pandora’s potential emerging market. Pandora has opened 67 new stores in China in the past year. It is reported that Pandora stores in Mainland China have already achieved full-year sales targets in the first quarter. In contrast to the rapid growth of Pandora, it is the market environment for jewelry and luxury goods that have been generally sluggish in the past two years. The performance of domestic traditional jewelry brands such as Chow Tai Fook and Luk Fook Jewellery was sluggish. The international brand Tiffany & Co was even further down the ranks of two CEOs for performance reasons, facing the dilemma of reform and restructuring.