Following robust growth in the latest quarter and an upswing in customer engagement in China, jewelry manufacturer Pandora has opted to elevate its sales outlook for the current year.
Pandora’s upward revision of its 2023 sales projection, as disclosed on Tuesday, anticipates an organic growth range spanning 2% to 5%. This modification stands in stark contrast to its earlier forecast, which spanned from a 2% contraction to a 3% upsurge in sales over the year.
The decision to revise the forecast comes on the heels of an impressive performance during the second quarter concluding on June 30. Notably, the quarter witnessed a year-on-year organic sales surge of 5%, accompanied by a 4% improvement on a reported basis, tallying at DKK 5.89 billion ($864.3 million). The concept of organic growth encapsulates sales denominated in local currencies, adjusted for changes in the company’s operational structure, which might encompass the addition or removal of distributors and franchisees. Concurrently, profit witnessed a 17% dip, settling at DKK 778 million ($113.9 million).
A pivotal factor contributing to this favorable outcome was Pandora’s triumphant reentry into the Chinese market, following a three-year period marred by Covid-19-induced closures and lockdowns. This resurgence was complemented by the inauguration of new retail outlets and the ongoing execution of the brand’s Phoenix strategy, devised to amplify its visibility and influence.
