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Your moments are precious... In this spirit, Danish jewellery brand Pandora designs sparkling gems for women that highlight their own style and well as capturing fleeting moments of happiness with a personal piece of jewellery, making them forever unforgettable.

A philosophy that the PANDORA brand supports. Founded in 1982 in Copenhagen, Denmark, PANDORA designs handcrafted and modern jewellery .

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pandora bracelet charms macy's Pandora Jewelry sales double in outlets, online By Christina Zander Published: May 12, 2015 8:06 a.m. ET

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ChristinaZander

Danish jewelry maker Pandora A/S, traditionally a wholesaler, has emerged as a tough competitor to some of its clients via its network of franchise stores.

First-quarter sales in outlets and online stores operated directly by the company more than doubled, growing 115%, compared with a group-wide revenue growth of 37%, the company said Tuesday.

Pandora's direct retail revenue for the quarter was 708 million kroner ($105.9 million) and comprises 20% of group revenue, up from around 13% in the same period of 2014.

The sharp rise in direct retail revenue highlights Pandora's efforts to increase profitability in key markets, such as Germany. The company said it took over 77 commercial lease holds in the country during the first quarter and was in the process of turning them into owned stores. Pandora has also chosen to retail its products directly when entering new markets and to set foot in high-end locations, where rent can be out of reach for franchises.

Pandora, whose charm bracelets, rings and earrings are available at 9,600 selling points world-wide, said it added 60 directly-operated stores in the first quarter, bringing the total of such outlets to 381.

Pandora hasn't disclosed the proportion of total sales that are made up by online purchases via the eight online stores it operates across Europe and in the U.S. The company, however, has said its online shop in the U.K. now makes up 10% of total U.K. sales.

J.P. Morgan points to Pandora's competitor Tiffany & Co. for comparison, which has online shops in 13 countries comprising about 6% of its total sales.

"We would think that Pandora, being positioned in a more affordable segment than Tiffany, which should be more suitable for online purchases, should be able to reach 6% of total sales from online and possibly higher levels," the bank said in a note.

Pandora said Tuesday that revenue in the first quarter soared to 3.55 billion kroner, from 2.59 billion kroner a year earlier, as sales showed double digit growth in Europe, Asia Pacific and the Americas. Operating profit increased to 1.24 billion kroner, from 887 million kroner.

The increase was driven both by favorable currency fluctuations in the Americas and Asia Pacific and volume growth, Pandora said.

Net profit in the first quarter fell to 383 million kroner, from 704 million kroner in the same period a year earlier due to a higher tax charge. Pandora settled a tax dispute with the Danish Tax Authorities on May 7, agreeing to pay 995 million kroner in 2015 in back taxes covering a six-year period.

The company raised its 2015 outlook and said it now expects revenue to grow to more than 15 billion kroner, up from a previous target of 14 billion kroner, largely on the back of exchange-rate gains.

Write to Christina Zander at christina.zander@wsj.com

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