Jeweller Pandora Sees ‘Healthy’ Sales So Far This Year 

Pandora products are seen at their store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. (Reuters)
Pandora products are seen at their store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. (Reuters)
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Jeweller Pandora Sees ‘Healthy’ Sales So Far This Year 

Pandora products are seen at their store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. (Reuters)
Pandora products are seen at their store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. (Reuters)

Pandora, the world's biggest jewellery maker, said on Wednesday its performance since the start of the year has been "healthy" with high single-digit sales growth, as it announced a share buyback program after a strong run.

Pandora has been a rare bright spot among retailers and brands targeting aspirational consumers with affordable luxury items.

The company is aiming for overall organic revenue growth of 6%-9% in 2024, it said, after reporting strong sales of its silver charms and bracelets which have helped its share price to more than double since the start of last year.

The growth target is in line with a goal set in October for a 7-9% compound annual growth rate from 2023 to 2026.

It also announced a share buyback program of up to 4 billion Danish crowns ($577.7 million), and a dividend of 18 Danish crowns per share. Its shares rose around 1% at the open.

A weak spot was China, where Pandora said fourth-quarter sales missed expectations, falling to 116 million crowns from 143 million in the same quarter a year earlier.

Expectations for a strong post-pandemic rebound in China were derailed last year by a property crisis and high youth unemployment, curbing consumer spending and hitting luxury brands like Burberry.

China accounted for just 2% of Pandora's total revenues in 2023, down from 5% of revenues as recently as 2021.

"We're in there for the long game. It's going to be step by step, and one day China will be a significant portion of Pandora," CEO Alexander Lacik said in an interview with Reuters.

The brand, which sold 107 million pieces of jewellery in 2023, up from 103 million in 2022, has expanded its range of bracelets, with prices ranging from $60 to more than $2,000, and been opening new stores and moving away from wholesale.

"They have improved their communication and marketing very significantly," said Jaime Vazquez de Lapuerta, portfolio manager at Bestinver in Madrid, which holds Pandora shares.

Pandora has a big opportunity to open more stores in its biggest market, the United States, he added. "Then you have a potential turnaround in China, but you don't need to believe in that to be bullish on Pandora."

The company's revenue in the US increased by 2% to 8.3 billion crowns over 2023. Revenue in China fell by 9% to 564 million crowns over the year.



Struggling Puma Names Former Adidas Sales Chief as CEO

FILED - 04 November 2022, ---: Arne Freundt poses for a picture. Photo: Christoph Maderer/PUMA/dpa
FILED - 04 November 2022, ---: Arne Freundt poses for a picture. Photo: Christoph Maderer/PUMA/dpa
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Struggling Puma Names Former Adidas Sales Chief as CEO

FILED - 04 November 2022, ---: Arne Freundt poses for a picture. Photo: Christoph Maderer/PUMA/dpa
FILED - 04 November 2022, ---: Arne Freundt poses for a picture. Photo: Christoph Maderer/PUMA/dpa

Sportswear brand Puma said on Thursday former Adidas sales chief Arthur Hoeld would take over as CEO, replacing Arne Freundt due to what the company called "differing views on strategy execution".
Puma has struggled to boost sales and profitability for more than a year. Its pick for the top job marks the latest talent swap between the competing brands, two years after its CEO Bjorn Gulden jumped ship to lead Adidas through a successful turnaround, Reuters reported.
Based across the road from each other in Herzogenaurach, Germany, the companies have a rivalry going back 75 years to a feud between shoemaker brothers Adolf Dassler, founder of Adidas, and Rudolf Dassler, who started Puma.
Puma said Freundt, CEO since November 2022, would step down on April 11 and Hoeld would take over as chairman and CEO effective July 1, with the board leading the company in the transition phase.
"I am incredibly excited to join the PUMA family as their new CEO," Hoeld, who left Adidas in October last year, said in a statement.
Adidas has enjoyed strong sales growth as it surfed a trend for its Samba and Gazelle sneakers, while Puma sales have been sluggish as it struggles to boost interest in new sneakers like the Speedcat.
Puma last month warned its 2025 sales would likely be weaker than last year, and said uncertainty was denting consumer spending in the US, which accounts for between 20-25% of its global sales.
"We expect this news to be taken positively, given ongoing investor concerns around performance and strategic execution," said Citi analyst Monique Pollard.
US tariffs on China, Vietnam, Indonesia and other key manufacturing hubs hit sportswear retailers, sending Puma shares down 10% on Thursday.
Puma sourced 28% of its products in China last year, while Vietnam was its second-biggest sourcing country with 26%, and Cambodia was third with 16%.
The share price, pummeled by slowing sales, is close to its lowest in nine years.
"We are convinced that thanks to his strategic vision and focus on product and brand, Arthur will lead Puma into a new chapter of strength and growth," said Heloise Temple-Boyer, chair of the supervisory board at Puma.