Pandora CEO Says Stimulus Checks Boosted Business

The transcript discusses the jewelry market trends, particularly in the US, highlighting the impact of stimulus checks and the expected market contraction in 2022. It covers the challenges of maintaining EBIT margins amidst rising costs and the strategic use of hedging to manage input costs like silver. The discussion also touches on the difficulties faced in China due to COVID policies and the cautious approach to brand relaunches. Finally, it explores consumer behavior changes in the US and the recent launch of lab-grown diamonds by Pandora.

What was the impact of the 2021 stimulus checks on the US jewelry market?

• The market shrank by 50%

• The market remained stable

• The market declined by 10%

• The market grew by 50%

What is the expected contraction range for the jewelry market in 2022?

• 20% to 25%

• 15% to 20%

• 10% to 15%

• 5% to 10%

How does Pandora plan to manage rising costs and inventory challenges?

• By reducing production

• By increasing product prices

• By using a 12-month rolling hedge

• By expanding into new markets

What percentage of Pandora's business does China currently represent?

• 20%

• 10%

• 15%

• 4% to 5%

What is Pandora's main concern regarding the Chinese market?

• Lack of consumer interest

• Zero-tolerance COVID policy

• Currency fluctuations

• High competition

What trend has been observed in the US consumer traffic to Pandora stores in 2022?

• Decreased traffic across all cohorts

• Increased traffic only in lower-income cohorts

• Stable traffic compared to last year

• Increased traffic across all cohorts

What is the initial reception of Pandora's lab-grown diamonds in the US?

• Indifference from the market

• Negative feedback from customers

• Confusion about the product

• High level of excitement