Pandora has upped its revenue guidance as its gross margin hits record levels and a plan to “restage” the brand begins bearing fruit. 

Jewellery displays in Pandora Oxford Street store

Pandora has reported 18% organic growth for its first quarter of 2024

The jewellery retailer, which operates some 280 stores in the UK, has reported 18% organic growth for Q1 FY24, with like-for-like sales up 11% during the period. 

Revenue increased by DKK 1bn (£0.11bn) compared with Q1 2023, while gross margin reached a record high of 79.4%, which Pandora said was aided by its channel mix and pricing as well as tailwinds from lowered silver prices and foreign exchange rates. 

The brand said its sales performance was also assisted by “early restaging of the brand” and its Phoenix Strategy, which includes a marketing step-up to “elevate brand desirability”. 

The retailer has now upped its 6-9% organic growth guidance to between 8-10% for the full financial year but has held its EBIT margin guidance at around 25%. 

European markets and the US market saw like-for-like growth of 9%, while the “rest of Pandora” saw 18% growth.

Sales across Pandora’s core and Timeless jewellery collections saw steady growth, while its new lab-grown diamonds segment grew 87%. 

Pandora told markets this morning that current trading in Q2 had “so far remained healthy with high single-digit like-for-like growth”.

Pandora president and chief executive Alexander Lacik said: “We are very pleased with our start to the year as we embark on the next chapter of Phoenix.”

“While 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 fuelling our growth with exciting strategic initiatives over the coming years.”