Pandora’s (PNDORA.CO) humble bracelets are stealing a march on more celebrated jewellery rivals. The $12 billion seller of $50-apiece sterling silver bracelets and charms said on Sunday that its sales had soared 12% in the quarter to December. That lifts annual revenue growth to 8%, above CEO Alexander Lacik’s full-year target of between 5% and 6%. It’s also well ahead of a projected 3% annual growth for $70 billion Cartier owner Compagnie Financiere Richemont (CFR.S), and in line with $376 billion luxury behemoth LVMH (LVMH.PA), LSEG estimates show.
Pandora’s performance, which has benefitted from its more assertive marketing strategy, seems to contradict the belief that luxury companies are more resilient than mass-market players in difficult times due to their more affluent customer base. In the past year, Pandora’s shares have risen 84%, against a 15% fall for Richemont and a 9% dip for Tiffany owner LVMH respectively. They have also outperformed these luxury rivals over the past five years.
True, Pandora’s strong presence in the United States and minimal exposure to struggling China has played to its advantage. The Danish group has also likely seized market share from unbranded rivals, which make up at least three-quarters of the market, rather than fancier players like Bulgari and Van Cleef & Arpels. Still, investors looking for some inconspicuous sparkle should probably broaden their gaze. (By Lisa Jucca)
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