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62 • FINANCIAL REVIEW
PANDORA ANNUAL REPORT 2016
34%
Americas
19%
Asia Pacific
47%
EMEA
REVENUE BY GEOGRAPHY
REVENUE BREAKDOWN
BY GEOGRAPHY
REVENUE BREAKDOWN
BY GEOGRAPHY
Growth
in local
DKK million
2016 2015 Growth currency
Americas
6,852 6,537
5% 6%
EMEA
9,556 7,548
27% 33%
Asia Pacific
3,873 2,652
46% 48%
Total
20,281 16,737 21% 24%
Total revenue for 2016 was DKK 20,281 million, an
increase of 21% (24% in local currency) compared with
DKK 16,737 million in 2015. The development was driven
by growth in revenue from existing stores supported
by strong retail execution, as well the global network
expansion. Revenue growth for the year was split more or
less evenly by revenue growth in stores open for more than
12 months (including all sales channels) and expansion of
the store network, including acquisitions.
In 2016, PANDORA continued the focus on expanding
the concept store network, and during the year, a net total
of 336 new concept stores were added to the store network.
Revenue from concept stores increased by 37% to DKK
13,306 million, corresponding to 66% of total revenue in
2016 compared with DKK 9,719 million corresponding
to 58% of total revenue in 2015. As part of the process to
improve the quality of the global store network, PANDORA
closed net 1,829 multibranded stores during 2016.
Revenue from PANDORA-owned stores (including all
PANDORA eSTOREs) generated revenue of DKK 6,883
million and increased 53% compared with DKK 4,511
million in 2015. The growth in retail revenue was driven
by strong in-store execution and the addition of net 119
new PANDORA-owned stores as well as the continued
success of the PANDORA eSTORE. The PANDORA
eSTOREs generate revenue of DKK 1,045 million in 2016,
corresponding to an increase of 65% compared with 2015.
Finally, of the new PANDORA owned and operated stores,
a net total of 19 concept stores and 5 shop-in-shops were
converted from franchisee stores, and the net effect of
converting wholesale revenue from franchisee stores to
retail revenue, including the effect from stores converted
during 2015, was around DKK 360 million.
At the end of 2016, sales return and warranty provisions
corresponded to around 6% of revenue value, compared
with around 7% at the end of 2015.