Skip to main content

Double-digit organic growth in Q3 – full-year guidance upgraded

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

Financial highlights

  • The Phoenix strategy is driving positive results. Q3 2023 organic growth accelerates to +11%. LFL  (like-for-like) growth reached +9% and network expansion added +4% growth.
  • Broad-based LFL growth across markets: key markets in Europe improves to +4% growth, US sees improvement to +5% and Rest of Pandora continues strong momentum at +22% LFL.
  • The gross margin reached an all-time high of 79.0%, +230bp vs. Q3 2022, supported by channel mix, cost efficiencies and price increases.
  • The EBIT margin landed at 16.5% in Q2 2023, in line with expectations. Full-year EBIT margin to be around 25%.
  • Leverage remains low with NIBD/EBITDA at 1.5x, in-line with the normal seasonality.  Full year leverage expected to be around 1.2x.
  • DKK 4.3 billion worth of shares purchased since February 8, making good progress towards purchasing a total of DKK 5.0 billion by February 2, 2024 at the latest.

Phoenix strategy highlights

  • At a Capital Markets Day in October, Pandora initiated the new chapter of Phoenix: transform the perception of Pandora into a full jewellery brand and accelerate growth. 
  • Increased investments into the brand are already showing good signs with several global brand campaigns and fashion events driving greater consumer engagement across all major touchpoints.
  • Brand heat combined with strong product designs delivered broad-based LFL growth across collections. Moments and Pandora ME generated +7% and +12% LFL respectively (“grow the core”) whilst Timeless continued to show even stronger LFL growth at +21% (“fuel with more”).  
  • In late August, Pandora notably expanded its assortment in Lab-Grown Diamonds. In Q3, the collection generated +84% LFL, although from a low base.

2023 Guidance and current trading

  • The organic growth guidance range is upgraded to “+5% to +6%” (previously +2% to +5%). The EBIT guidance remains unchanged at “around 25%”.
  • Current trading in Q4 2023 is healthy with underlying LFL growth up at high-single digit levels. Pandora continues to remain mindful of the macroeconomic climate.

Alexander Lacik, President and CEO of Pandora, says:
“We are very pleased with our results this quarter. Our investments in the brand are attracting more consumers into our stores. We have delivered strong broad-based growth whilst our all-time high gross margin underpins our unique earnings model. We raise our guidance for the full year and continue to see very exciting opportunities ahead for Pandora, as we embark on the next chapter of our growth strategy”.

DKK millionQ3 2023Q3 20229M 20239M 2022FY 2022FY 2023 guidance
Revenue5,5725,26317,31616,60726,463 
Organic growth, %11%3%5%8%7%+5% to +6%
Like-for-Like, %9%1%3%6%4% 
Operating profit (EBIT) 920978 3,3653,5376,743 
EBIT margin, %16.5%18.6%19.4%21.3%25.5%Around 25%

Attachments

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.