Pandora plans to start introducing its much talked about lab-grown diamond brand, Pandora Brilliance, to different global markets over the next year.
It did not specify when the brand will start appearing in stores in the United States, its largest market. On a conference call following the release of its financial results, Pandora CEO Alexander Lacik said the brand is keeping the specifics of different market rollouts under wraps for “competitive reasons.”
The fashion-oriented lab-grown line was originally introduced last year in the United Kingdom.
“Part of the reason for a test, instead of an immediate global rollout, was to learn and sharpen our go-to-market toolbox,” Lacik said. “Based on the learnings to date, we are confident that we have generated sufficient learnings for a global rollout.
“Our aim is to establish [Pandora] Brilliance as a new platform to democratize diamonds. Diamonds are not just forever. They are for everyone.”
He added: “The most important point for us is to figure out: Are people willing to spend 400 or 500 pounds on a transaction on this category?… It was a test and we did try many different things…if it didn’t have legs, I would not have been announcing we were going forward. We feel very good about the insights that we have generated so far.”
In other news, Lacik said that, in the charm company’s third quarter, “U.S. jewelry market continue[d] to grow at an unusually high rate, supported by stimulus programs.” However, he noted that Pandora’s sales outpaced overall market growth, with sales rising 59% over pre-COVID 2019.
“This is the third quarter in a row with growth over 50%,” he said.
He noted that 98% of its third-quarter sales in the United States were full price, as the company decreased its promotional activity.
Worldwide, the results were not nearly as strong, as many markets continued to be impacted by the COVID-19 pandemic. The company still saw 9% organic growth in sales versus the third quarter of 2019, even though 5% of the physical store network was temporarily closed due to COVID-19.
However, Pandora said that performance in Asia, including China, remains weak and heavily impacted by COVID-19. But European markets, particularly the United Kingdom, Germany, and Italy, saw a strong rebound.
(Image courtesy of Pandora)
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