Jewellery specialist Pandora has outlined its Q1 for 2023, reporting its “fourth consecutive quarter of resilient growth” despite facing macroeconomic challenges.
The company reported organic 1 percent growth, while its like-for-like sales were at 0 percent. This compared to its 21 percent growth in Q1 2022. Its revenue for the quarter rose from 5,689 million DKK to 5,850 million DKK.
In key European markets, its LFL came in at 0 percent, while in the US it remained at minus 7 percent, akin to its Q4 results. The rest of its business remained at 12 percent.
China was among the firm’s gradual improvements following the re-opening of the country, with LFL reporting positively since late March. Pandora said it was preparing for a phased relaunch of the brand later in the year.
The company credited its growth to network expansion, which it said generated “strong margins” and rose 3 percent in Q1.
Gross margins also saw an upward trend, continuing on from recent years, now reaching 77.5 percent, largely due to pricing actions and channel mix.
Meanwhile, Pandora’s EBIT margin fell from 23 percent to 21.5 percent reflecting cost-phasing and price increases carried out in Q4 ‘22. It stated that its EBIT is expected to be “broadly in line” with the previous fiscal year, remaining unchanged at around 25 percent.
For its 2023 outlook, the company slightly raised its organic growth guidance to in the range of -2 percent to +3 percent, up from -3 to +3 percent.
It added that its Q2 had “so far been resilient”, with trends similar to Q1, however, the level of uncertainty remained “elevated due to the macroeconomic environment”.
In a release, president and CEO of Pandora, Alexander Lacik, said: “We have started 2023 well with resilient growth and solid margins. Our investments in lifting the brand are paying off with good performance in our Moments base business and strong results from the newer platforms, Timeless and Pandora Me.
“It’s clear that we are increasingly the jewellery brand of choice, particularly for gifting occasions. The macroeconomic outlook remains uncertain, but we are confident in our ability to adapt and thrive as we’ve proven over the past few quarters.”