Pandora: solid first quarter, 2024 forecasts raised
May 02, 2024 at 11:23 am
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Pandora reported a stronger-than-expected rise in first-quarter operating profit on Thursday, thanks to the effects of its strategic plan, leading the Danish jeweler to raise its full-year guidance.
For the first three months of the year, operating profit (Ebit) stood at 1.50 billion crowns (around 200 million euros), compared with 1.25 billion a year ago and a consensus figure of 1.31 billion.
The group explains that it benefited from the effects of its "Phoenix" program, which resulted in a repositioning of the brand and the launch of a new marketing campaign, christened "Be Love".
Gross margin reached a record 79.4%, while operating margin (Ebit) improved by 0.5 points to 22%.
After posting organic growth of 18% in the first quarter, Pandora now expects organic sales growth of between 8% and 10% this year, instead of 6% to 9%.
Its operating margin forecast remains unchanged at around 25%.
Listed on the Copenhagen Stock Exchange, Pandora shares rose by 6% following this publication, making it one of the biggest gainers on the pan-European STOXX 600 index.
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Pandora A/S specializes in the design, manufacturing and marketing of jewelry and related items. Net sales break down by product family as follows:
- charms and carriers (78%);
- other (22%): rings, necklaces, pendants, earrings, chains and diamonds.
At the end of 2023, the group had 6,686 points of sale (of which 2,651 concept stores) worldwide.
Net sales are distributed geographically as follows: Denmark (0.1%), the United States (29.9%), the United Kingdom (14.4%), Italy (9.7%), Germany (4.9%), Australia (4.8%), France (4.5%), China (2.8%) and other (28.9%).