FINANCIAL HIGHLIGHTS
· Group revenue in Q2 2017 increased by 12% (12% in local currency) to DKK 4,825 million compared with Q2 2016
· Revenue from PANDORA owned retail increased 36% (37% in local currency).
- Like-for-like sales-out growth for PANDORA owned concept stores was 10%
· Revenue from EMEA increased 10% (13% in local currency) driven by growth in all main markets
· Revenue from Americas increased 1% (-1% in local currency)
- Like-for-like sales-out growth in the US was 8% driven by more effective promotions and improved in-store execution
· Revenue in Asia Pacific increased 35% (34% in local currency) driven by strong sales performances in Australia and China
· Full jewellery brand ambitions on track with revenue from Rings, Earrings and Necklaces & Pendants combined up 23% with the three categories representing 23% of Group revenue
· Revenue from Charms increased 6% and revenue from Bracelets increased 19%
· Gross margin was 73.9% in Q2 2017 (Q2 2016: 75.3%) impacted by headwind from currency
· EBITDA was DKK 1,611 million in Q2 2017, corresponding to an EBITDA margin of 33.4% (Q2 2016: 37.2%) impacted by higher administrative costs
· Free cash flow was DKK 556 million in Q2 2017 (Q2 2016: DKK 576 million)
· DKK 1,449 million returned to shareholders in Q2 2017 via quarterly dividend of DKK 9 per share and share buy-back of DKK 446 million
· Related to the Q2 2017 results, PANDORA will pay out a quarterly dividend of DKK 9 per share to shareholders (corresponding to DKK 1,000 million)
· Financial guidance for FY 2017 is maintained, including expected revenue of DKK 23-24 billion and EBITDA margin of approximately 38%.
Commenting on the results, Anders Colding Friis, CEO of PANDORA, said: ”We are pleased with the results for the second quarter delivering double digit top-line growth and continued healthy profitability. Markets like China, Italy, the UK, and Australia performed well, reflecting the significant growth potential for our product offering in both our newer and more developed markets. We also continue to make strides in improving the quality of our global store network and added net 70 new concept stores during the quarter.
The retail environment in the US remains challenging, however, our strategy has delivered a solid improvement in the performance of the concept store network. Additionally, we are rolling out a number of initiatives to strengthen our US business even further.
Our journey to become a full jewellery brand is progressing well, with revenue from Rings, Earrings and Necklaces & Pendants increasing by 23%. Meanwhile, sales of Charms and Bracelets also grew by 6% and 19% respectively.”
CONFERENCE CALL A conference call for investors and financial analysts will be held today at 11.00 CEST and can be joined online at www.pandoragroup.com. 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 32 71 16 58
UK (International): +44 (0) 203 427 1908
US: +1 646 254 3388
To participate, please quote confirmation code “PANDORA” when dialling into the conference.
FINANCIAL CALENDAR 2017
15 August 2017 PANDORA shares are traded ex-dividend
17 August 2017 Payment of quarterly dividend
24 August 2017 Payment of quarterly dividend for ADR holders
7 November 2017 Interim Report for the first nine months of 2017
14 November 2017 PANDORA shares are traded ex-dividend
16 November 2017 Payment of quarterly dividend
23 November 2017 Payment of quarterly dividend for ADR holders
CONTACT For more information, please contact:
| INVESTOR RELATIONS Magnus Thorstholm Jensen Vice President, Head of Investor Relations +45 7219 5739 mtje@pandora.net | MEDIA RELATIONS Kristian Lysgaard Director, Corporate Communications +45 7219 5774 krly@pandora.net |
| Brian Granberg Investor Relations Officer +45 7219 5344 brgr@pandora.net | Martin Kjærsgaard Nielsen Head of Media Relations, Corporate Communications +45 5077 5271 mnie@pandora.net |
