Pandora has raised its full-year outlook for 2024 as its efforts to elevate the brand and expand its offerings have led to robust third-quarter sales.
The Danish jeweler now anticipates sales growth of 11% to 12% on an organic basis for 2024, up from its earlier forecast of 9% to 12%, as announced on Wednesday. The company's earnings before interest and taxes (EBIT) margin remains unchanged at around 25%. Additionally, Pandora has increased its expansion plans for 2024, planning to open between 125 and 150 new concept stores, compared to the previous estimate of 100 to 150 stores.
"We are very pleased with our strong results this quarter, particularly given the current macroeconomic environment," said Pandora CEO Alexander Lacik. "We are transforming the perception of Pandora into a full jewelry brand and unlocking the next chapter of our growth by attracting more consumers to our brand."
Pandora reported that trading at the beginning of the fourth quarter has remained strong, with like-for-like growth in the mid-single digits.
For the three months ending September 30, the company reported a 10% increase in sales to DKK 6.1 billion ($880.7 million). Organic growth was 11%, while like-for-like sales grew by 7%. The sales boost was attributed to the jeweler's Phoenix program, a growth and brand transformation strategy launched in 2021, as well as an increased store count and a broader product collection.
"As the only global player in the accessible luxury jewelry market, Pandora continues to benefit from the shift towards strong brands in a largely fragmented industry, with a significant runway for growth ahead. Our relentless execution of this vision is yielding positive results," the company said.
Pandora also saw online sales grow by 20% year-over-year on a like-for-like basis in the third quarter, accounting for 18% of total revenue. Profit increased by 10% to DKK 595 million ($87.8 million).
However, revenue from Pandora's Lab-Grown Diamonds collection fell 26% year-over-year to DKK 64 million ($9.2 million). Despite the decline, Pandora expressed confidence in the potential of lab-grown diamonds, introducing a new collection called Microfine Diamonds. The new range features micro lab-grown diamonds in fresh product designs, which have received "an encouraging response from consumers due to the beautiful designs and accessible pricing," according to Pandora.