Pandora ups sales guidance as international markets enjoy strong growth

The retailer said in the second quarter of 2023 sales grew 5% driven by 2% growth in like-for-like sales and “network expansion” of 4%.

Like-for-like growth in key markets in Europe was flat, sales in the US improved to -4%, while in the rest of the world markets grew by 12%.

EBIT margins were down 190 basis points to 20.2%, although the retailer said full-year EBIT margin was to be broadly in line with last year.

As a result, growth guidance range has been updated to between 2% and 5%, while EBIT margin guidance remains unchanged at “around 25%”.

Pandora said its “Phoenix strategy continues to elevate” the retailer as the “go-to affordable global jewellery brand”.

Like-for-like sales in Pandora-owned stores rose 4% and 9 percentage points above partner stores. The retailer said it has been expanding its offering in Australia, with Mexico and Brazil to follow in October.

The retailer said following Covid-19 disruption in China, Pandora has begun “initial steps” to relaunch the brand there in mid-July and has seen “some pick-up in traffic”.

Pandora said that current trading is “solid” with like-for-like growth at mid-single-digit levels.

President and CEO of Pandora Alexander Lacik 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.”