PANDORA announces that the Company, as of 12 September 2014,has signed an agreement with Bluebell about joint distribution of PANDORA jewellery in Japan from 1 January 2015. The agreement is subject to certain conditions to be fulfilled.
PANDORA plans, through the cooperation, to accelerate the store roll-out, enhance the retail focus and make significant marketing investments in the Japanese market. Bluebell will contribute with its in-depth knowledge of the retail market and the Japanese consumer as well as their insight into the Japanese real estate market. Currently, Bluebell owns and operates one concept store and seven shop-in-shops.
Allan Leighton, CEO at PANDORA, said: "The Japanese market is a very attractive market both in terms of size and growth opportunities and holds a great potential for PANDORA. Bluebell has done a great job in creating awareness around our brand in Japan, and we believe the timing is right to join forces with our partner, to unlock the full potential in the market."
As part of the agreement with Bluebell, PANDORA will on 1 January 2015 purchase the majority of the assets in Japan from Bluebell in a non-cash transaction. As a starting point, the term of the agreement is five years. Upon termination of the agreement, PANDORA will take over the full distribution of PANDORA jewellery in Japan. The total amount to be paid to Bluebell will depend on the realised revenue in 2019 and will be in the range of HKD 74-220 million (or approximately DKK 52-156 million). The full amount will be transferred to Bluebell upon termination of the agreement.
PANDORA originally entered into an agreement in April 2013 with Bluebell, giving Bluebell the exclusive distribution rights to PANDORA jewellery in Japan.PANDORA has been available in Japan since 2011.
The Japanese jewellery market had a value of JPY 961 billion (approximately DKK 52 billion) in 2013, corresponding to an increase of 6% compared to 20121.
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[1]Euromonitor 2014
FINANCIAL GUIDANCE
The content of this release will have no impact on PANDORA's outlook for 2014, as latest communicated to the market in connection with the second quarter interim report on 12 August 2014.
ABOUT BLUEBELL
Bluebell was founded in France more than 60 years ago and specializes in distribution and sales of international branded goods including but not limited to fragrances, beauty, fashion, accessories, jewellery and watches. Bluebell today has more than 400 points of sale in Asia generating a turnover of more than USD 1 billion. www.bluebellgroup.com
ABOUT PANDORA
PANDORA designs, manufactures and markets hand-finished and modern jewellery made from genuine materials at affordable prices. PANDORA jewellery is sold in more than 80 countries on six continents through approximately 10,000 points of sale, including more than 1,200 concept stores.
Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs more than 9,000 people worldwide of whom approximately 7,000 are located in Gemopolis, Thailand, where the company manufactures its jewellery. PANDORA is publicly listed on the NASDAQ OMX Copenhagen stock exchange in Denmark. In 2013, PANDORA's total revenue was DKK 9.0 billion (approximately EUR 1.2 billion). For more information, please visit www.pandoragroup.com.
CONTACT
For more information, please contact:
Morten Eismark
VP Group Investor Relations
Phone +45 3673 8213
Mobile +45 3045 6719