Jewellery giant Pandora has issued its financial results for Q3, in which it reported a sales growth that defied expectations, therefore leading it to raise its forecast for the year.
The Danish company said that it saw an organic growth rate of 11 percent, above the previously anticipated 6 percent, while its like-for-like growth reached 9 percent.
As a result, the retailer raised its guidance range to be between 5 and 6 percent – up from 2 to 5 percent – with its EBIT guidance to remain unchanged at around 25 percent.
Key markets in Europe continued to improve with a 4 percent growth, as did the US, where growth was up 5 percent, and the rest of the world, which experienced a LFL growth of 22 percent.
While the company’s gross margin hit “an all-time high” of 79 percent, its EBIT margin came in at 16.5 percent for Q2 2023, falling in line with expectations.
Pandora attributed the positive results to its ongoing Phoenix strategy, which came into a new phase in October with the goal of transforming the perception of the brand into “full jewellery”.
Linked brand campaigns and events were already reflected in the results, as the company’s Moments and Pandora Me categories generated a growth of 7 and 12 percent, respectively, while Timeless saw a LFL growth of 21 percent.
Despite the upbeat outlook, Pandora’s operating profit took a hit, falling to 920 million crowns (32.5 million pounds) down from the 978 million crowns reported the year prior.
The hit came due to higher commodity prices and foreign exchange rates, however the company is expecting the net impact to move towards the positive in Q4.