Pandora increased its revenue by 41 percent and its net profit by 90.7 percent in the first quarter of 2011.
According to Pandora’s latest financial report, the company’s revenue for the first quarter this year was DKK 1745 million compared to DKK 1238 million in the same quarter last year while its net profit was DKK 515 million and DKK 270 million in the same time periods.
In a statement Mikkel Vendelin Olesen, Pandora’s chief executive officer, said the company experienced “strong underlying growth in Q1 and implemented price increases inmost markets to balance the impact of rising gold and silver prices”.
“Our performance was based on a combination of good volume and product mix developments in existing and new stores across markets.
“We are particularly pleased with our continued ability to deliver superior margins in part as result of our combined hedging policy and inventory effect.
“We remain focused on delivering very strong growth by increasing penetration in existing markets,upgrading existing stores as well as developing new markets.”
He added that the reaction to Pandora’s recent price increases have varied across markets depending on timing of the price increase, the current consumer environment and the strength of the brand in that market.
“Whilst the overall feedback from customers and consumers has been cautiously positive, in some markets we have seen a moderate slowdown in the immediate aftermath of price increases. In general, there is some impact on volumes in the two to four months following a price increase, after which volumes gradually recover.”
The brand had maintained its “strong market position” in Australia but local price increases would not come into effect until Q2 and “we are therefore waiting to see the full impact of the price increases”.
Olesen concluded that the company’s “financial outlook for 2011 remains unchanged” with the company expecting “a revenue increase of no less than 30 percent”.