Pandora, the Danish jeweler, has increased its full-year growth guidance after a strong start to the third quarter. The company reported a mid-single digit level of like-for-like growth in the third quarter so far, indicating positive underlying trends. This growth is primarily attributed to increased traffic during the holiday season. However, Pandora expects traffic to normalize after the holiday season.
Solid Financial Performance
In the second quarter, Pandora reported a net profit of 778 million Danish kroner ($113.9 million), slightly lower than last year’s figure of DKK934 million. However, revenue experienced a 4.2% increase, reaching DKK5.89 billion. This aligns with the company-compiled consensus, which anticipated a net profit of DKK807 million and revenue of DKK5.71 billion.
The second-quarter earnings before interest and tax margin stood at 20.2%, just below the consensus expectation of 20.4%.
Market Performance
Pandora noted that its key European markets remained stable during this period. The United States experienced improvement, while China saw a modest increase in traffic.
Expansion Plans
Pandora has exciting plans for expansion: it will launch three new collections featuring lab-grown diamonds in late August. Additionally, the company will extend its offerings to Australia, with Mexico and Brazil following suit in October.
Revised Targets
Pandora has revised its targets for organic revenue growth in 2023. It now seeks to achieve growth between 2% and 5%, compared to the previous range of -2% to +3%. The company remains confident in maintaining an EBIT margin of around 25.0%.