Pandora’s plans for US retail
Charm bracelet maker Pandora has had a strong week, seeing its share price appreciate by 5% over the last five days. But, like many companies involved in retail, it has suffered over the course of 2017 so far. The company is not taking it lying down, and recently explained its strategy to cope with the U.S. retail slowdown to Bloomberg.
Pandora’s strong week
SOURCE: Yahoo Finance
In a telephone interview last Friday, Pandora’s CEO, Anders Colding Friis, said: “we’re not waiting for the good times to return to the U.S. retail market – we see things we can do now in terms of new products and new product categories. We see good possibilities for strengthening our business in the current environment.”
Friis is referencing the company’s troubles in the first quarter – Pandora’s U.S. revenue declined by 10%, and the Danish jeweler decided to close some of its underperforming stores due to a drop in shopping mall traffic.
Over five years, Pandora’s share price has risen by a shocking 1244%
SOURCE: Yahoo Finance
Saying that Mother’s Day was an “important event” for the company, and that products had been “well received”, Friis reiterated the opportunity in the U.S. retail market, saying:
“Even as retail stores are challenged in the U.S. we still see opportunities there and will open more stores, especially in the western part of the country where our store network isn’t fully developed. So we see good opportunities in the U.S. market.”
If Pandora has proven formidable in one respect, it is certainly seeing opportunities before the competition gets there. It’s massive growth over the past five years is a reflection of the company seeing a window for affordable luxury in the jewelry market and capitalizing on to produce better goods at more attractive prices than other jewelers. Today, charm beads are an industry of their own – and Pandora created it.
Friis concluded by referencing the products with which the company is synonymous, saying: “our focus is to hold on to our core - which is charms and bracelets – and then add the other categories on top of that. We will continue that journey.”
Dominion holds Pandora in its Global Trends Luxury Fund.
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