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Pandora Jewelry Idea Proposal (CPH:PNDORA)

Pandora Jewelry Idea Proposal (CPH:PNDORA)

Has the popularity of Pandora jewelry peaked?

Report Available: October 27, 2016


Blueshift’s initial research shows PNDORA’s rapid sales growth hitting a speed bump, especially in the Americas, during a difficult time for the retail jewelry market. PNDORA is continuing to expand its store footprint, trying to increase sales outside of bracelets and charms, and beefing up its online presence.



  1. PNDORA has been a remarkable success story since its IPO in 2010, with sales growing 40% last year to nearly $2.5 billion. PNDORA now boasts almost 9,000 points of sale around the world, including company-owned stores, franchise-owned stores, a network of shops-within-a-shop and multi-branded jewelry stores. PNDORA plans to open another 300 concept stores a year through 2018, with approximately 50% of the new outlets in Europe, 25% in the Americas, and 25% in Asia Pacific.
  2. PNDORA’s revenue and profits missed estimates in Q2, with sales growing by a disappointing 20% year-over-year. Like-for-like sales were down 1% in the Americas region, suggesting the possibility that the company has hit a saturation point. Company executives blamed a difficult retail environment for the slowdown. Sales growth was still a robust 51% in Asia Pacific but down from 62% in Q1. Despite the disappointing results, the company maintained its full-year forecasts for revenue and margins.
  3. Competing jewelry retailers also have struggled this year. SIG, owner of Kay Jewelers, Jared the Galleria of Jewelry, and Zales, has missed earnings estimates in each of the past two quarters and cut guidance for the second half of the year. High-end jeweler TIF’s same-store sales fell 8% in Q2 and executives have forecast a low single-digit net sales decline for the year. Online jewelry retailer NILE said sales were flat in Q2 after two straight quarters of declines.
  4. PNDORA is trying to expand sales beyond its core products of bracelets and charms. Ring sales were up 42% in Q2 and now account for 13% of total revenue, while earring sales increased more than 80% to reach 4% of total revenue. The company also continues to adjust its sales channel mix, converting its offerings within Jared stores to PNDORA-branded shops-within-a-shop. Online sales, which the company started rolling out in select markets in 2015, now represent about 4% of overall revenue.
  5. Blueshift Research’s November 2014 report found PNDORA continuing to grow through partnerships and new products. Sales growth was evident among established retailers for the brand. Sources said PNDORA had shown its ability to stay on trend and would benefit from partnerships with DIS and others. However, the report found that PNDORA is threatened by lower-priced competitors and by the possibility of charm jewelry losing its luster.


What will PNDORA’s sales growth look like over the next one to two years? What is driving store traffic and sales? Has the brand hit a saturation point in established markets? What do sales trends look like outside the U.S.? To answer these and other questions, Blueshift Research will issue a market research report by gathering data from U.S. PNDORA Franchisees, International PNDORA Stores, Multi-Branded Jewelry Stores, Competitors, and Industry Specialists.


Companies: Blue Nile Inc. (NILE), Pandora A/S (CPH:PNDORA), Signet Jewelers Ltd. (SIG), Tiffany & Co. (TIF)


Research Begins: Oct. 10, 2016