Pandora has raised its outlook for the full year as its strategy to elevate its brand and increase its offering led to strong third-quarter sales.
The Danish jeweler now expects sales to rise 11% to 12% on an organic basis for 2024, compared with the 9% to 12% growth it reported earlier in the year, it said Wednesday. The earnings before interest and taxes (EBIT) margin is unchanged at around 25%. Pandora has also upped its expansion plans for 2024 to include 125 to 150 new concept stores, from its original 100 to 150.
“We are very pleased with our strong results this quarter, particularly in the context of the current macroeconomic backdrop,” said Pandora CEO Alexander Lacik. “We are transforming the perception of Pandora into a full jewelry brand and unlocking the next chapter of our growth by attracting more consumers to our brand.”
Current trading at the start of the fourth quarter remains strong, with like-for-like growth in the mid-single digits, Pandora noted.
The company’s sales advanced 10% to DKK 6.1 billion ($880.7 million) in the three months that ended September 30. Organic growth was 11%, while sales gained 7% on a like-for-like basis. The rise in sales was a result of the jeweler’s investment in furthers measures through its Phoenix program, a growth and brand transformation strategy it started in 2021. An increase in its store count, and the number of collections it carries also drove sales during the period.
“As the only global player in the accessible luxury jewelry market, Pandora continues to benefit from the shift towards strong brands in a largely fragmented industry with a large runway for growth ahead. Relentless executive on this vision is yielding positive results,” the company explained.
Online sales grew 20% year on year on a like-for-like basis in the third quarter, representing 18% of total revenue for the period. Profit climbed 10% to DKK 595 million ($87.8 million).
Revenue from Pandora’s Lab-Grown Diamonds collection slipped 26% year on year to DKK 64 million ($9.2 million). Despite the drop, Pandora believes lab-grown has value for the company, adding a new line during the quarter called Microfine Diamonds. The range features micro lab-grown diamonds across new product designs, which have shown “an encouraging response from consumers due to the beautiful designs and accessible pricing,” Pandora noted.
Image: A Pandora store in Latvia. (Shutterstock)
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