Pandora Sees ‘Healthy’ Sales So Far This Year

Pandora, the world’s greatest jewelry maker, mentioned on Wednesday its efficiency for the reason that begin of the yr has been “wholesome” with excessive single-digit gross sales development, because it introduced a share buyback programme after a powerful run.

Pandora, which sells attraction bracelets with costs starting from $60 to greater than $2,000, has been a uncommon vivid spot amongst retailers and types concentrating on aspirational customers with inexpensive luxurious objects.

The corporate goals for natural income development of 6-9 p.c in 2024, it mentioned, after reporting robust gross sales of its silver charms and bracelets which have helped its share worth to greater than double for the reason that begin of final yr.

“Regardless of the worldwide macroeconomic uncertainties… the corporate is manoeuvring strongly and higher than the market,” mentioned Soren Lontoft Hansen, senior analyst at Sydbank.

The expansion goal is consistent with a purpose set in October for a 7-9 p.c compound annual development price from 2023 to 2026.

Pandora additionally introduced a share buyback programme of as much as 4 billion Danish crowns ($577.7 million), and a dividend of 18 Danish crowns per share. Its shares rose 0.5 p.c on the open.

A weak spot was China, the place Pandora mentioned fourth-quarter gross sales missed expectations, falling to 116 million crowns from 143 million in the identical quarter a yr earlier.

Expectations for a powerful post-pandemic rebound in China have been derailed final yr by a property disaster and excessive youth unemployment, curbing shopper spending and hitting luxurious manufacturers like Burberry.

China accounted for simply 2 p.c of Pandora’s complete revenues in 2023, down from 5 p.c of revenues as lately as 2021.

“We’re in there for the lengthy sport. It’s going to be step-by-step, and at some point China can be a good portion of Pandora,” CEO Alexander Lacik mentioned in an interview with Reuters.

Pandora, which bought 107 million items of jewelry in 2023, up from 103 million in 2022, has been constructing its model, opening extra shops and shifting away from wholesale.

“They’ve improved their communication and advertising and marketing very considerably,” mentioned Jaime Vazquez de Lapuerta, portfolio supervisor at Bestinver in Madrid, which holds Pandora shares.

Pandora has an enormous alternative to open extra shops in its greatest market, the US, he added. “Then you might have a possible turnaround in China, however you don’t must consider in that to be bullish on Pandora.”

Pandora mentioned its advertising and marketing spending would improve over the primary quarter because it revamp the model, impacting first-quarter EBIT (earnings earlier than curiosity and tax) margin. The corporate goals for 25 p.c EBIT margin for 2024 as a complete.

Advertising and marketing prices grew by 5 p.c in 2023 in fixed currencies, however the associated fee as a share of revenues declined barely to 13.7 p.c.

The corporate’s income within the US elevated by 2 p.c to eight.3 billion crowns over 2023. Income in China fell by 9 p.c to 564 million crowns over the yr.

By Helen Reid, Isabelle Yr Carlsson, Boleslaw Lasocki and Agata Rybska; Editors: Savio D’Souza, Mark Potter, Jan Harvey and Louise Heavens

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Pandora Raises Sales Forecast After Q3 Profit Beat

Danish jewelry maker Pandora reported a smaller than anticipated drop in third-quarter revenue as extra customers got here to its shops, and raised its full-year gross sales outlook, sending its shares up.