Danish jewelry brand Pandora has raised its full-year revenue outlook as it reported better-than-expected second-quarter sales. This is mainly due to improved performance in the U.S. and China, the company stated on Tuesday, August 15.
“Given our solid performance so far, our updated guidance now sees another year of positive organic growth,” CEO Alexander Lacik said in the statement.
Pandora said it now expected organic sales growth of between 2% and 5%, against an earlier range of between -2% and 3%. Sales increased to 5.9 billion DKK ($864 million) in the April to June period from 5.7 billion in 2022.
“The surprisingly strong revenue growth shows that sales are more resilient than both we and the market had dared to hope,” said Jyske Bank analyst, Janne Vincent Kjaer, in a note.
In China, the world’s largest jewelry market, which accounts for 3% of Pandora’s business, sales grew 5%. Pandora aims to triple its sales in China from 2019 levels. The company has recently stated, that they will begin a relaunch in the Chinese market, though customer demand has yet to recover to pre-pandemic levels.
“In China, we had probably hoped for a stronger rebound, but that’s not how it panned out,” Lacik told Reuters.
“Since the relaunch was initiated mid-July, we have seen some pick-up in traffic in both stores in Shanghai and Beijing as well as online,” the company added.
Source: Reuters
