Shares in Pandora, the Danish jewellery maker known for its charm bracelets, jumped more than 15% on the Copenhagen exchange yesterday, following full-year results that indicate a near 40% increase to net profits. The surge in shares was driven by strong demand in the US and new ring ranges.
In 2014, a year that the brand described as “prosperous”, Pandora grew in its existing markets and moved into seven new ones. In its more developed markets – the US, the UK, Germany and Australia – 96 concept stores were opened. The brand has plans to continue its store network expansions, expecting to add more than 275 new concept stores in 2015.
The retailer is shining at the moment, far from the rise and fall it experienced a few years ago. In 2010 Pandora went public, raising approximately £1.4bn in its October IPO and seeing incredible sales growth during its first three quarters as a publicly traded company. After failed attempts to move upmarket however, the firm was forced to issue a shock profit warning some months later in 2011, and shares fell by a dramatic 65%.
CEO Allan Leighton, who has been with the Danish-listed company since 2013, said that he considers high street fashion retailer H&M as more of a competitor than other jewellery brands such as Swarovski. He put this down to Pandora’s the brand’s “mass market” appeal.
Leighton will step down as Chief Executive next month and will receive a pay-out of DKr34m (£3.4m) from the jewellery retailer. The loss-making Co-operative Group is said to have lined up Leighton as its new chairman.
Prior to his role at Pandora, the business heavyweight lead giants including Royal Mail, where he was Chairman, and grocery chain Asda, where he is credited for leading the revival as its CEO. He will be succeeded by Scandinavian Tobacco Group boss Anders Colding Friis.