Stock of the Week: Pandora

Apparently, bracelets are pandemic-proof

Andrew Willis 1 February, 2021 | 4:28AM
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Andrew Willis: Did you know that Pandora’s little charm bracelets account for more than 9% of the entire global wristwear market? At least, that’s what we estimate after seeing the Danish jeweler’s 2020 numbers.

Call it a fad or a lasting fashion, but bracelets – specifically from Pandora – have a very loyal fan base. Equity analyst Jelena Sokolova points out that around 70% of the company’s business is from repeat buying…

And the kicker is that 60% of the company’s revenue comes from gifting! Which means you have a consumer base that’s enthusiastic and comfortable enough about a product to share it!

This loyalty, alongside a new marketing approach, will contribute to a strong recovery in sales in 2021. Which brings us to the brilliance of Pandora’s new brand positioning. By focusing more on aspects of its jewelry that makes it special  - while maintaining design elements that are easily recognizable – Pandora’s moving from fashion towards personal expression. 

It aims to reopen with an approach that’s more emotional and gifting-oriented – with a strong bet that we’ll be looking to make the years post-pandemic more meaningful.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Pandora A/S ADR33.14 USD-0.42

About Author

Andrew Willis

Andrew Willis  is Content Editor for Morningstar.ca. Follow him on Twitter @AndrewWillisCDN.

 

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