Pandora raises full-year revenue guidance as sales jump 5%
Pandora has delivered “robust” results in Q2 2023 as it saw its sales jump 5% and total revenue increase to DKK 5,894m (£675.35m).
As a result, the retail jeweller has now updated its organic growth guidance range to +2% to +5%, which was previously -2% to +3%.
LFL growth in key markets in Europe broadly remained stable at 0%, however, the US saw some improvement to -4% LFL growth and the rest of Pandora’s operations reported a strong LFL growth of +12%.
Meanwhile, its EBIT margin at 20.2% was -190bp Y/Y due to cost phasing and anticipated investments in growth, among other factors.
According to Pandora, its Phoenix strategy has continued to elevate the brand making it one of the “go-to affordable global jewellery retailers”.
Under the strategy, Pandora ME and Timeless collection’s LFL growth increased by 17% and 7% respectively in Q2 2023 over the same period last year.
Additionally, LFL growth in Pandora-owned stores was also up +4%. Following three years of COVID-19 disruption in China, Pandora relaunched the brand in mid-July in Shanghai and Beijing and has seen some pick-up in traffic both in-stores and online.
Along with raising its full-year revenue outlook, the brand also expects the EBIT margin guidance to remain unchanged at “Around 25%”.
The report also stated that current trading in Q3 so far is “solid” with LFL growth at mid-single digit levels
Alexander Lacik, president and CEO of Pandora, said: “We are pleased with delivering yet another solid quarter against a backdrop of macroeconomic uncertainty. We have consistently demonstrated that the foundations built under the Phoenix strategy are yielding positive results.
“We will continue to push ahead with our strategic initiatives for the second half of 2023 and beyond, including the expansion of our assortment in Diamonds and the ongoing roll-out of our new store concept, EVOKE 2.0. Given our solid performance so far, our updated guidance now sees another year of positive organic growth.”