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Amid promising results in the second quarter of 2021, Pandora Jewelry has updated its financial guidance for the year.

Pandora’s sales, share price on the rise

Posted August 13, 2021 | By Jeweller Staff

Pandora Jewelry has issued an encouraging financial guidance, upgrading its forecast for the remainder of 2021.

The company had originally estimated organic growth – that is, increase in revenue excluding mergers and acquisitions – would be “above 12 per cent” for the year; the revised figure is 16–18 per cent.

"Describing the company’s 'strong momentum' during the period, the statement noted that organic growth had increased 13 per cent compared with 2019 and 84 per cent compared with 2020"

Meanwhile, the forecast operating margin has also increased from 22 per cent to 23–24 per cent.

The updated guidance is based on the assumption that 5 per cent of Pandora’s stores will be temporarily closed or severely impacted due to the COVID-19 pandemic during the second half of 2021.

Earlier forecasts indicated the number could be as high as 10 per cent.

In the second quarter of 2021, 15 per cent of its global network of approximately 2,690 stores – of which 1,382 are owned and operated by Pandora – were temporarily closed.

A statement issued by the company on 8 August noted, “Today, around 6 per cent of the stores are temporarily closed or severely impacted due to COVID-19. The updated guidance also assumes that COVID-19 will have no major negative impact on production and supply chain.

“COVID-19 is still expected to impact organic growth negatively by around -6 per cent for the full year.”

The statement also shed light on, and compared, past results to those achieved during the second quarter of 2021.

Describing the company’s “strong momentum” during the period, the statement noted that organic growth had increased 13 per cent compared with 2019 and 84 per cent compared with 2020.

The positive results follow the launch of Pandora’s new strategic initiative, Phoenix, at the end of the first quarter.

Meanwhile, following some time in the doldrums, Pandora’s share price on the NASDAQ Copenhagen had rebounded to DKK794 at the time of publication – up from DKK436 at the same time last year.

In fact, the company’s share price is now well above its ‘COVID low’ of DKK203 on 13 March 2020 and is now trading near its 2017 peak of more than DKK900.

The company will publish detailed financial results for the second quarter of 2021 in an Interim Report on 17 August.