Jewellery maker Pandora lifts outlook as U.S. sales continue to surprise
Pandora, the world’s largest jewellery maker by production capacity, on Monday lifted its sales and profit margin outlook for the year, citing a strong performance in the third quarter.
Pandora has benefited as shops reopened this year after lockdown restrictions and has seen its sales top pre-pandemic levels as U.S. shoppers in particular have splashed out as massive government stimulus and vaccinations against COVID-19 fuelled spending on goods and services.
For 2021, the Danish company now expects organic sales growth of 18-20%, up from a previous forecast of 16-18%, and an earnings before interest and tax (EBIT) margin of 24-24.5%, up from a previously forecast 23-24%.
“COVID-19 and the unusually high level of U.S. growth continue to create increased uncertainty around the guidance,” it added.
Pandora, best known for its silver charm bracelets, said third-quarter sales came in at 4.73 billion Danish crowns ($734.92 million), beating the 4.67 billion expected by analysts in a poll compiled by the company.
It reported quarterly EBIT of 957 million crowns, which was above the 917 million expected by analysts, and resulted in an EBIT margin of 20.2%.
“Revenue growth and the EBIT margin were lifted by continued strong U.S. performance and a sequential improvement in Europe as COVID-19 restrictions were eased,” Pandora said.
The firm will report full third-quarter earnings on Nov. 3.
