Pandora reports strong Q2, raises full year outlook

In the second quarter, jewellery brand Pandora recorded an organic growth of 15 percent, comprising like-for-like (LFL) growth of 8 percent, network expansion of 6 percent and 1 percent phasing of sell-in to partners and other.

For 2024, the company raised its forecast for organic growth to between 9 to 12 percent, while the EBIT margin guidance remains unchanged at around 25 percent. For the third quarter, underlying LFL growth is expected at mid-single digit levels.

Commenting on the trading update, Alexander Lacik, president and CEO of Pandora, said: “Our strategy continues to take Pandora to new heights despite general consumer spending being somewhat sluggish. Thanks to our strong performance, we are again raising revenue guidance for 2024 and look to the second half of the year with optimism.”

The company’s LFL growth in key European markets remained at 10 percent, the US reported a 5 percent increase, while the rest of Pandora continued double-digit growth at 13 percent.

Second quarter gross margin reached 80.2 percent, up 210bp, and EBIT margin reached 19.8 percent, down 40bp.

Pandora’s “Core” segment delivered 1 percent LFL growth whilst the “fuel with more” segment delivered 29 percent LFL growth. As part of the Phoenix strategy, Pandora is expanding into selected, new design aesthetics and during the quarter under review, the company launched the Pandora Essence collection globally.

The company also opened its first global flagship store in Copenhagen, its largest store to date globally.