Celebrities help Pandora gain market share

Copenhagen — Danish jewellery maker Pandora said on Monday that targeted marketing and campaigns with celebrities such as Pamela Anderson had helped it gain market share in the final months of last year despite a flat overall market.

The company, known for its bracelets and charms, said on Sunday organic sales grew by 12% year-on-year between October and December, lifting annual growth to 8% and exceeding the company’s own full-year forecast of 5%-6% made in early November.

“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 jewellery market was down around the world,” CFO Anders Boyer said in an interview.

Shares in Pandora, which sells its jewellery in more than 100 countries, have risen 80% in the last year. On Monday, shares were trading up 2.6% at 0844 GMT, at their highest level since June 2016.

By sponsoring fashion shows, focusing on getting stories into fashion magazines, and working with celebrities and influencers, Pandora has managed to attract more people to its more than 2,500 stores worldwide, especially in the US, its biggest market.

“Pandora has for many years been the most well-known jewellery 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,” said Boyer.

The “affordable luxury” brand has had success hiring former Baywatch star Pamela Anderson to promote its lab-made diamonds collection, he said.

The company’s full-year operating profit margin stood at 25%, in line with its November guidance, after hitting 34% in the fourth quarter.

Revenue in the fourth quarter stood at 10.8-billion Danish crowns ($1.58bn), the company said, up from 9.9-billion a year earlier, while earnings before interest and tax (Ebit) rose to 3.7-billion crowns from 3.2-billion crowns.

Full-year revenue stood at 28.1-billion crowns, up from 26.5-billion in 2022, while Ebit rose to 7.0-billion crowns from 6.7-billion crowns.

Reuters