US, Asia Weakness Dents Pandora Sales

RAPAPORT... Pandora sales lagged behind expectations in 2017, as the jewelernoted a decrease in traffic to its stores in Asia and difficult US market conditions.Revenue rose 12% to $3.74 billion (DKK 22.78 billion) for the year, shy of the $3.78 billion to $3.94 billion (DKK 23 billion to DKK 24 billion)that it forecast. At constant exchangerates, revenue grew 15%, the Danish seller of charm bracelets, rings andearrings reported Tuesday.In the Americas, revenue climbed 4% to $1.17 billion (DKK7.11 billion), with the US market continuing to prove difficult for thejeweler."The retail environment in the US remained challenging andthe physical network, including franchisee stores, continued to experiencenegative like-for-like performance," the company said.Asia Pacific saw a sales hike of 25% to $795 million (DKK 4.84billion), although growth slowed to just 5% in the fourth quarter. That end-of-year weakness waslargely due to a 3% decrease in Australia - Pandora's largest market inthe region -which experienced a decline in the number of Chinese tourists.Total profit for 2017 dropped 4% over the previous year, to $947.9million (DKK 5.77 billion).Sales of necklaces and pendants showed the strongest improvement in2017, surging 43% to $216.4 million (DKK 1.32 billion), followed by earrings,which jumped 35% to $233 million (DKK 1.42 billion). Sales of charms grew 8% to$2.12 billion (DKK 12.92 billion).Pandora expects revenue to increase by 7% to 10% in local currencies this year, as itcontinues to grow the company-owned part of the store network and launch new products.