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6 • PANDORA IN 2016
PANDORA ANNUAL REPORT 2016
EXECUTIVE SUMMARY
2016 was another strong year for PANDORA, and our
financial performance surpassed initial expectations in many
areas, including revenue growth and profitability. The strong
performance was driven by positive development in our key
focus areas, including product diversification, branded store
network development and geographical expansion.
PRODUCT DIVERSIFICATION
Following several years of progress in the Rings category,
we began to focus on the Earrings category at the beginning
of 2016, while still maintaining attention on both the
Charms and Bracelets core category and the Rings core
category. As well as introducing 46 new earring products,
we gave earrings greater in-store focus and created targeted
earring campaigns. In 2016, revenue from the Earrings
category increased around 80%, representing 5% of Group
revenue compared with 3% in 2015. At the same time,
revenue from the Charms and Bracelets core category
and the Rings core category increased by 16% and 28%
respectively.
To drive all product categories, we launched seven
new product collections in 2016, and we introduced
new products in all our individual product concepts,
including Moments, PANDORA ESSENCE COLLECTION,
PANDORA Rose and the Disney collection. All collections
were received well by end consumers and generated
more revenue than the corresponding collections in
2015. In addition, we launched Petite Memories, a new
and innovative floating locket concept, and introduced
the PANDORA Rose collection to all markets, following
successful earlier launches in the UK and the US.
NETWORK DEVELOPMENT
In 2016, we continued to expand the branded part of our
store network, opening net 336 new PANDORA concept
stores. We now have 2,138 concept stores across our
three geographical regions, of which 598 are owned and
operated by PANDORA. Furthermore, we opened eSTOREs
in three new countries to further broaden consumer reach.
By the end of the year, we had a total of 17 eSTOREs,
including newly launched eSTOREs in Canada, China and
New Zealand, giving us a truly global online presence.
As an integrated part of our strategy to improve our store
network by focusing on branded sales channels, we closed
PRODUCT CATEGORY REVENUE
PRODUCT CATEGORY SHARE
DKKm
0
2,000
4,000
6,000
8,000
10,000
12,000
2015
2016
Other
jewellery
Rings
Bracelets
Charms
Other jewellery
Rings
Bracelets
Charms
65%
16%
12%
7%
59%
18%
13%
10%
100
80
60
40
20
0
%
2016
2015