Pandora ups full year revenue guidance
Pandora has upgraded its full year revenue guidance after its first quarter revenue increased by DKK 1 billion compared to the same period in the previous year.
The jewellery brand said the second phase of its Phoenix transformation strategy has got off to a strong start with organic sales growing by 18% in the period. On a like-for-like basis, sales climbed by 11% following uplifts of 9% in Europe, 9% in the US and 18% in the rest of the world.
Furthermore, Pandora’s gross margin reached a new record high of 79.4% as the company benefited from its channel mix, pricing and efficiencies, as well as some tailwind from silver prices and foreign exchange rates.
Through its Phoenix strategy, Pandora is aiming to transform the perception of the company into a full jewellery brand. This has included the launch of its new multi-season “Be Love” marketing campaign.
Pandora has now upped its full year organic growth guidance to between 8% and 10% from a prior 6% to 9%. Its EBIT margin guidance remains unchanged at around 25%.
Giving an update on progress in its second quarter, Pandora said trading has remained healthy with high single-digit like-for-like growth.
Alexander Lacik, president and chief executive of Pandora, said: “We are very pleased with our start to the year, as we embark on the next chapter of Phoenix.
“Whilst jewellery 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 fuelling our growth with exciting strategic initiatives over the coming years.”
