Danish Jewellery Brand Pandora Reported Good Results

Last Tuesday, the Danish jewellery brand Pandora reported its success again, and its share price rose by more than 18%.

According to reports, the Pandora report, which is famous for its colorful beaded bracelet, reported in the fourth quarter of 2014: (1 Danish gram is equal to 0.95 yuan).

Sales increased by 40.4% to 3 billion 960 million dkrona.

Operating profit was 1 billion 380 million DKK, an increase of 54% over the previous year, exceeding the 1 billion 250 million kronor expected by Reuters analysts.

Raised the share repurchase program from 2 billion 400 million DK to 3 billion 900 million DK, increasing the dividend from 6.5 kronor to 9 kroner per share.

Let's go back to Pandora's experience of reversing U.

In August 2, 2011, Pandora's share price hit an astonishing 66% record of a day's plunge. It was due to a 30% drop in revenue in 2011, and CEO announced its resignation on the same day. As a result of management mistakes, the blind price hike to the luxury goods, leading to the loss of the original customer group. At that time, the European economic downturn led to a price of about 100 to 1 thousand dollars. The Pandora between the cheap jewelry and high-end jewellery was very vulnerable to the middle class's tight spending.

After management changes and strategic adjustment, Pandora returned to the light luxury position of the people. In August last year, it announced a 10 year cooperation agreement with Disney, adding Disney's classic animation image to its jewelry design.

As the performance rebounded, Pandora's share price climbed gradually from the second half of 2012. As of February, 24, the Japanese stock price was 590 kronor, which was 16 times more than that of the lowest three years ago (37 kroner).

Last Tuesday, Pandora also announced major initiatives in the Chinese market:

According to the agreement, from July 1, 2015 to December 31, 2018, Pandora will join hands with Hongkong Oracle Investment Co., Ltd. to launch Pandora in China.

When the sales agreement is terminated,

Will fully take over China's business.

Oracle has been acting as agent for Pandora in China since 2011. According to this agreement, in July 1, 2015, Pandora will acquire the main assets of Oracle in China, with a down payment of HK $120 million, and the final purchase price will depend on the realization in 2018 of the Chinese market.

(estimated between 2 and 500 million Hong Kong dollars), the balance will be delayed until the termination of the agreement.

At present, Pandora has 30 concept stores and 19 stores in China.

Pandora expects total sales in 2015 to reach 14 billion Danish kronor, 17.6% higher than 11 billion 900 million in 2014, and the profit margin before interest tax depreciation (EBITDA) can reach 37%, a percentage point higher than that in 2014.

In 2014, a 33 year old Pandora opened 310 concept stores, and plans to open 300 new stores this year, bringing the total number to more than 1700.

Alan Leighton, chief executive, said there was still room for more stores.

Starting next month, Anders Colding Friis, the former Scandinavia tobacco group, will succeed Leighton as the new chief executive of Pandora.