News Details


August 9, 2018

PANDORA reports revenue growth in local currency of 4% for Q2 2018, and 8% adjusted for a positive one-off of DKK 200 million in Q2 2017 related to a change in return policy in the US. The EBITDA margin for the quarter was 31.1% (33.4% in Q2 2017).
Q2 2018 represented the first full quarter with collections from PANDORA’s new design team. While the new products contributed positively to the total like-for-like sales-out growth1,  which improved to -1% in Q2 2018 from -5% in Q1 2018. The results for the second quarter also indicate that the transformation presented at the Capital Markets Day in January will take longer than initially expected. New rings, earrings, neckwear and bracelets delivered growth as expected, but the new charms are not fueling the reignition of charms revenue as anticipated. Additionally, reduction of inventories in the wholesale channel is challenging the revenue outlook for the full year 2018. This combined with weaker than anticipated total like-for-like sales-out growth in July and increasing manufacturing costs led PANDORA to change its financial guidance for 2018 on 6 August 2018.


  • Group revenue was DKK 4,819 million in Q2 2018 and increased 4% in local currency
  • Total like-for-like sales-out growth was -1% (-5% in Q1 2018)
  • Revenue from PANDORA owned retail increased 43% in local currency
    • Retail like-for-like sales-out1 growth was 3% (0% in Q1 2018)
    • Revenue from the eSTORE increased 54% in local currency and was 9% of revenue
  • Revenue from wholesale decreased 27% in local currency
  • Gross margin was 75.5% in Q2 2018 (Q2 2017: 73.9%)
  • EBITDA was DKK 1,496 million in Q2 2018 (Q2 2017: DKK 1,611 million), corresponding to an EBITDA margin of 31.1% (Q2 2017: 33.4%)
  • Free cash flow was DKK 1,149 million in Q2 2018 (Q2 2017: DKK 556 million)
  • In Q2 2018, PANDORA returned DKK 1,091 million to shareholders in share buybacks
  • On 23 August 2018, PANDORA will pay out an interim dividend of DKK 9 per share

Commenting on the results, Anders Colding Friis, CEO of PANDORA, said:

“We improved the underlying business since the first quarter. However, Q2 2018 came in below our expectations. This was mainly a consequence of a weaker than expected development in the Charms category as well as the development in wholesale, which was impacted by a reduction of inventory in the channel.
We still believe in our strategy towards 2022, but we have realised that we have been too optimistic on the speed of the impact from new products. Most categories have seen good support from the new collections, but the new products have not lifted the Charms category. We are taking the right strategic initiatives, but the transition will take longer than expected. 
To support our strategy, we are optimising costs. This includes further alignment of the organisation to fit our long-term ambitions as well stronger impact from the already ongoing procurement programme.“

1 “Total like-for-like sales-out” and “Retail like-for-like sales-out” are alternative performance measures not defined by IFRS, refer to note 1 (document enclosed)

The total like-for-like sales-out growth improved to -1% in Q2 2018 (from -5% in Q1 2018) due to improved performance in both franchise and PANDORA owned concept stores. Retail like-for-like sales-out increased 3% (0% in Q1 2018), and the eSTORE continued the strong trend and increased 54% in local currency.

Even though the total like-for-like performance improved, it did not fully materialise in the reported revenue growth as franchise partners reduced inventory levels in the quarter versus both Q1 2018 and Q2 2017. In combination with the one-off impact of DKK 200 million related to the change in return policies in the US in Q2 2017, this reduced revenue growth in the quarter significantly.

In Q2 2018, other points of sale (wholesale), which represented 16% of revenue for the quarter, decreased 23% in local currency driven by a combination of weaker sales-out performance and inventory reduction. Performance in other points of sale is challenged as the channel is mainly dependent on charms and does not distribute new concepts like PANDORA Shine.

In the quarter, PANDORA grew total like-for-like sales-out with 3% in the US and revenue in China increased 29% in local currency with total like-for-like sales-out growth of 1%. This indicates a positive impact from the Company’s actions in these two important markets. Italy revenue decreased -7% in local currency, partly driven by a total like-for-like sales-out growth of -7%. Additionally, inventory reductions and weak performance in other points of sale impacted performance in Italy.

An important part of PANDORA’s strategy is to innovate the product portfolio. PANDORA has over the past years demonstrated the ability to grow Rings, Earrings and Neckwear, three categories, which represents around 80% of the global jewellery market. PANDORA has been growing the three categories with a compound annual growth rate of 28% over the last 5 years. These categories now make up 27% of revenue (23% in Q2 2017). In the quarter, new products in Rings, Earrings and Neckwear continued to strengthen PANDORA’s position in the categories and delivered 17% total like-for-like sales-out growth compared with new products launched in 2017. Q2 2018 was the first full quarter with sales out of PANDORA Shine, which has been well received by consumers. It now represents 5% of sales out in concept stores and eSTORE. PANDORA Rose continued to perform well increasing 75% for the quarter and together with PANDORA Shine represented 20% of sales-out in the quarter.

Consumers have responded positively to the new designs in the wristwear category, where revenue from Bracelets grew 11% in local currency, and new bracelets launched in 2018 delivered 30% total like-for-like sales-out growth compared with bracelets launched in 2017. While new bracelets are positively received, revenue in charms did not pick up with the new designs. Consumers continue to be attracted by the charms/bracelet concept, but wear less charms on their bracelet, and consequently buy less charms. This trend drives a continued growth of charm-carrying bracelets, while revenue from the Charms category decreases. Charms revenue decreased -7% in local currency in the quarter (-3% after adjusting for one-off related to return reserve provision change in Q2 2017 – impact is approximately 4 percentage points on all categories). PANDORA is committed to lead and innovate the wristwear category and will launch new wristwear platforms as part of the 2022 strategy. The first of these platforms, PANDORA Reflexions, a new charms/bracelet concept, will be launched in October 2018.

On Monday 6 August, PANDORA adjusted the 2018 financial guidance for 2018 based on the results for Q2 2018 as well as weaker than anticipated total like-for-like sales-out growth in July.

The expected revenue growth for 2018 was adjusted to 4-7% local currency growth from previously 7-10%. Furthermore, PANDORA expects to add around 50 more concept stores in 2018 and additional forward integrations amounting to around DKK 400 million or approximately 2 percentage points revenue growth.

The change in revenue guidance is driven by three things. Firstly, new charms have not fueled a reignition of the category as anticipated. Secondly, an expected further negative impact from change of inventory levels in the wholesale channel. Thirdly, a soft performance in the wholesale channel, especially in other points of sale.

The lower than expected revenue will impact the EBITDA margin negatively. A higher share of plated products, at a lower gross margin, further impacts the margin. Finally, the new products to be launched in 2018 are more time consuming to produce than expected. Mitigating actions are being pursued, but the higher production time has around 1 percentage point negative impact on the gross margin compared to previous expectations for 2018. The EBITDA margin expectation for 2018 is consequently approximately 32%.

As a consequence of the lower revenue growth and the higher production costs, PANDORA has strengthened the ongoing procurement program, and now expects additional savings of DKK 200 million annually from 2019. In addition, the organisational realignment announced on 7 August 2018 is expected to reduce operating expenses with around DKK 150 million from 2019.


New guidance
(as announced on 6 August)
Previous guidance
Revenue, DKK billion/ local currency growth4-7% 7-10% 22.8
EBITDA marginApprox. 32%Approx. 35%37.3%
CAPEX, % of revenueApprox.  5%Approx.  5%6.1%

PANDORA expects to add around net 250 concept stores (previously around 200) during 2018 of which roughly 50% are expected to be opened in EMEA, 25% in Americas and 25% in Asia Pacific. PANDORA expects two-thirds of the concept store openings to be PANDORA owned stores. Furthermore, PANDORA expects a full year impact on revenue of around DKK 1.4 billion (previously DKK 1.0 billion) from the full year effect of acquisitions made during 2017 as well as acquisitions in 2018.

PANDORA expects revenue growth in Q3 2018 to be below the guided range. This is mainly due to an expected further negative impact from change of inventory levels in the wholesale channel as well as the significant increase in the share of revenue from PANDORA owned retail. As retail revenue is more skewed towards Q4 (at the expense of Q3), compared with wholesale revenue, this will affect the seasonality of revenue in the second half.

Furthermore, the EBITDA margin in Q3 2018 is expected to be below the full year expectations due to the expected low revenue growth and an expected one-off cost of around DKK 50 million related to severance payments.

Assuming current exchange rates versus the Danish Krone, full year growth reported in DKK is expected to be around 2 percentage points lower than in local currency (compared with previously expected 4 percentage points lower).

A conference call for investors and financial analysts will be held today at 11.00 CEST and can be joined online at The presentation for the call will be available on the website one hour before the call.

The following numbers can be used by investors and analysts:
DK: +45 35 44 55 83
UK (International): +44 (0) 203 194 0544
US: +1 855 269 2604

21 August 2018                Ex-dividend date
23 August 2018                Payment date
6 November 2018            Interim Report for Q3/9M 2018

PANDORA designs, manufactures and markets hand-finished and contemporary jewellery made from high-quality materials at affordable prices. PANDORA jewellery is sold in more than 100 countries on six continents through more than 7,700 points of sale, including more than 2,500 concept stores.
Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs more than 26,500 people worldwide of whom more than 13,200 are located in Thailand, where the Company manufactures its jewellery. PANDORA is publicly listed on the Nasdaq Copenhagen stock exchange in Denmark. In 2017, PANDORA’s total revenue was DKK 22.8 billion (approximately EUR 3.1 billion).

For more information, please contact:

Magnus Thorstholm Jensen
Vice President, Head of Investor Relations
+45 7219 5739

Johan Melchior
Director External Relations, Corporate Communications & Sustainability
+45 4060 1415

Christian Møller
Investor Relations Officer
+45 7219 5361

Mads Twomey-Madsen
Vice President, Corporate Communications & Sustainability
+45 2510 0403
Brian Granberg
Investor Relations Officer
+45 7219 5344