Pandora’s execution of the second phase of its Phoenix strategy in Q1 has propelled the company onto a solid trajectory. The strategic initiative, designed to elevate Pandora into a comprehensive jewelry brand, commenced with the impactful “BE LOVE” marketing campaign, resonating deeply with consumers and driving significant like-for-like (LFL) growth across Pandora’s collections.
The company witnessed a notable surge in organic growth, reaching 18%, fueled by an impressive 11% LFL growth and a 5% expansion in network size. This resulted in a substantial revenue increase of DKK 1.0 billion compared to Q1 2023.
Key European markets experienced robust LFL growth of 9%, while the United States maintained solid performance with a growth rate of 9%. Other regions also demonstrated remarkable growth, achieving an 18% increase.
Pandora achieved a new record-high gross margin of 79.4%, marking a significant increase of 190 basis points compared to Q1 2023.
Additionally, the company’s operating profit (EBIT) witnessed a notable surge, reaching 1.507 billion Danish crowns in Q1 2024, surpassing analysts’ expectations.
In light of its stellar performance, Pandora has revised its revenue guidance for fiscal year 2024, raising its organic growth outlook to a range of 8%-10%, compared to the previous forecast of 6%-9%. Despite prevailing challenging market dynamics, Pandora remains optimistic about maintaining its operating margin guidance at around 25%.
Reflecting on the results, Pandora President and CEO Alexander Lacik expressed satisfaction, stating, “We are very pleased with our start to the year, as we embark on the next chapter of Phoenix. Whilst jewelry markets around us generally remain subdued, our ongoing brand investments allow us to take market share. We raise our revenue guidance and look forward to keep fueling our growth with exciting strategic initiatives over the coming years.”
