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.

 

Editor's Note: All images are courtesy of Unsplash.com and AP Images. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Pandora A/S ADR38.42 USD1.25

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar Canada. He previously produced content for Fidelity Investments and finance industry events for Euromoney Institutional Investor and has written in the past for Thomson Reuters and CNN. Follow him on Twitter @Andrew_M_Willis.

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