Pandora, the Danish jeweler, has increased its full-year growth guidance after experiencing a substantial boost in store visits during the third quarter. This unexpected uptick in demand was driven by a surge in tourist activity.
The company reported that current trading is robust, and it has observed high-single digit levels of underlying like-for-like growth in the fourth quarter thus far.
For the third quarter, Pandora recorded a net profit of 543 million Danish kroner ($77.9 million), a decline from DKK734 million the previous year. However, revenue saw a 5.9% increase, reaching DKK5.57 billion.
According to a consensus compiled by the company, net profit was projected to be DKK524 million with revenue sitting at DKK5.43 billion.
Notably, third-quarter organic growth reached 11%, surpassing the consensus of 6% compiled by the company.
“Our investments in the brand are attracting more consumers into our stores,” stated Chief Executive Alexander Lacik. “We have delivered strong broad-based growth…and continue to see very exciting opportunities ahead.”
The gross margin also reached a new record high of 79%, marking a 230 basis point increase from the previous year. This was supported by a favorable channel mix, cost efficiencies, and price increases.
Pandora now sets its sights on achieving organic revenue growth between 5% and 6% by 2023, compared to the previous range of 2% to 5%. Additionally, it maintains its target of an earnings before interest and tax margin of approximately 25%.