Pandora revises its growth upwards
Pandora reports an operating profit of 123 million euros for the third quarter of 2023. With the recovery in tourism and efforts to broaden its customer base, the company is revising its growth forecasts upwards, despite global economic challenges.
By Eva Morletto08 novembre 2023
Pandora, the famous jewelry brand founded in Copenhagen in 1982 and one of the most powerful in the industry, suffered a decline in sales in the third quarter of the 2023 fiscal year. However, the decline turned out to be less severe than analysts had anticipated. This smaller-than-expected decline enabled the company to revise its growth forecasts upwards.
For this period, the Danish company's operating profit amounted to 123 million euros, or 920 million Danish kroner, compared with 978 million kroner the previous year. Despite the decline, Pandora CEO Alexander Lacik is satisfied. Indeed, the result exceeds the estimates of financial analysts, who were forecasting profits of only 875 million kroner. The stock market has also expressed its optimism: at the opening of the Copenhagen Stock Exchange this morning, Pandora's share price showed a positive jump of +3.66%. Annual growth forecasts, previously estimated from 2% to 5%, have now been revised upwards, with an expected increase in overall sales of 5% to 6%. This improvement is due in part to the upturn in international tourism, which played a key role in the development of demand in the third quarter. In addition, the brand's ongoing efforts to strengthen its identity and attract a broader customer base are starting to pay off.
The company, born from the initiative of Danish goldsmith Per Enevoldsen and his wife Winnie, has had an exceptional development: the small boutique created in the Danish capital in the 80s has become an internationally renowned brand, present in over 100 countries worldwide with 6,500 points of sale. The brand has been able to maintain satisfactory sales figures, particularly in the United States, despite inflation and a difficult context for the luxury sector.
JP Morgan commented in a financial analysis note: "This is a good thing in the context of a globally volatile retail environment". Despite this success, Pandora's management remains cautious, mindful of exchange rate fluctuations and rising raw material prices. Nevertheless, if these factors remain stable while production cost increases continue to be manageable, Pandora seems well positioned for a positive fourth quarter.
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