Pandora ups FY revenue guidance on strong Q2

Pandora has upped its full-year revenue guidance after reporting a 5 percent increase in revenue in the second quarter and saying growth in the third quarter has so far been “solid”.

The Danish jewellery giant generated revenue of 5.89 billion Danish krone (790 million euros) in the three-month period, up from 5.66 billion Danish krone a year earlier.

On a like-for-like basis, revenue was up 2 percent in the second quarter, with Europe growth broadly flat, the US down 4 percent, and ‘Rest of Pandora’ up 12 percent.

“We are pleased with delivering yet another solid quarter against a backdrop of macroeconomic uncertainty,” said Pandora president and CEO Alexander Lacik in a statement.

He continued: “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.”

Looking at more recent trading, Q3 has so far “been solid”, the company said, with like-for-like growth at mid-single digit levels.

It said the performance has been driven by a broad-based pick up in traffic during the holiday season, which it expects to ease off when the season ends.

“Nonetheless, the underlying trading trends are encouraging,” it said, though noting it “remains mindful of the macroeconomic climate”.

Following the company’s strong Q2 performance it has upped its full-year outlook. It now expects organic growth of between 2 percent and 5 percent - it had previously expected a range of down 2 percent to up 3 percent.

Its EBIT margin guidance remains unchanged at around 25 percent.