Copenhagen, Denmark – Pandora posted solid third-quarter results despite an overall decline in jewellery sales, with the brand reporting an increase in traffic that it attributes to the money it’s put into marketing.
It also noted an “unexpected” increase in demand from tourists, including domestic tourists, a pattern it said might not be repeated in Q3 2024.
Globally, Pandora’s sales grew 11 per cent year-on-year (9 per cent on a like-for-like basis) to 5.57 billion Danish kroner ($799.6 million) in the third quarter, the company said on Wednesday.
Gross margin reached an all-time high of 79 percent, driven by Pandora’s decision to raise prices from the end of 2022, as well as cost efficiencies and channel mix.
Operating profit (EBIT) fell 6 percent from DKK 978 million ($140.4 million) to DKK 920 million ($132.1 million) due to rising costs, but the decline was less than analysts expected, prompting the jewellery company to raise its full-year guidance again.
Pandora now expects sales to grow between 5 per cent and 6 per cent, up from a previous forecast of 2 per cent to 5 per cent.
“We are very pleased with our results this quarter,” said president and CEO Alexander Lacik.
“Our investments in the brand are attracting more consumers to our stores. We delivered strong, broad-based growth, while our all-time high gross margin underpins our unique profit model. We … continue to see very exciting opportunities ahead for Pandora as we embark on the next chapter of our growth strategy.
Pandora is in the midst of a turnaround plan called “Phoenix”.
At its Capital Markets Day in London in October, the company launched the next chapter of the plan, investing in global campaigns and fashion events to help consumers see Pandora as a full jewellery brand, not just a company that makes charms bracelets.
