Pandora's 2022 Revenue Soars, Cultivating Diamonds a Highlight

On February 8, Danish jewelry brand Pandora announced critical financial figures for the fourth quarter and full year of the fiscal year 2022, ending December 31, 2022.

-Total sales revenue grew organically by 7% to a record DKK 26.5 billion

-China 2022 sales revenue of DKK 737 million, sell-out growth down 47% year-on-year, and organic down 39% year-on-year Currently, China is Pandora's seventh largest market with 3% of sales revenue.

Following the earnings report, the share price jumped 10.63% at the close of trading on the evening of the 8th, up 81.7% from its lowest point at the end of September last year.

Phoenix's strategy is progressing well.

-Core series Moments' fourth quarter sales revenues were flat compared to the same period last year

-Prices increased by an average of 4%

-Nurtured diamond collection on sale in North America. Plans to launch a new group in 2023 to further expand the market

▫️Phoenix strategy: presented in April 2021, designed to drive growth through various initiatives, including strategic expansion. This includes driving growth among the new "Millennial" and "Gen Z" consumer segments and the core collection Moments.

-In 2022, Pandora opened 88 concept stores. Located primarily in the U.S. and China, Pandora expects to open an additional 50 to 100 concept stores in 2023. it is tripling its sales in China to 2019.

"Real sales," or Sell Out, refers to the fact that goods are ultimately sold by the retailer to the consumer, corresponding to the flow of money from the consumer to the retailer, in layperson's terms.

- Sell Out reflects the brand's revenue - Sell In" demonstrates the consumer's acceptance of the product

-2022 financial report on the cultivation of the diamond segment

Sales: 213 million kroner (+344%) Real sales increase: 130%

VS

Group sales: 26,463 million kroner (+13%) Increase in actual sales: 4%

-The comparison makes it clear why Pandora has devoted a large part of its earnings report to the growth of cultivated diamonds.

-Compared to this segment, the highest increase in actual sales for other collections was in ME (40%), while Timeless and Signature, which account for a larger segment share, declined by 2% and 12%, respectively.

-Pandora expressed through the data: brand consumers are very receptive to cultivating diamonds.

Cultivated diamonds currently account for only 0.8% of overall sales, and the best deals are for tiny-grained pearls under 0.15 carats, which is related to the company's positioning. But certainly has been recognized by Pandora's customer base and is Pandora's next key launch track.