Pandora delivers like-for-like growth of 7 percent

Pandora reported third quarter organic growth of 11 percent, comprising like-for-like (LFL) growth of 7 percent, network expansion of 5 percent and negative 1 percent from phasing of sell-in to partners and other.

The company said in a statement that LFL growth in key European markets was 4 percent, the US remained solid at 6 percent while the rest of Pandora continued double-digit growth at 14 percent.

Commenting on the third quarter update, Alexander Lacik, president and CEO of Pandora, said: “We are very pleased with our strong results this quarter, particularly in the context of the current macroeconomic backdrop. We are transforming the perception of Pandora into a full jewellery brand and unlocking the next chapter of our growth.”

The company’s gross margin for the quarter reached 80.1 percent, up 110 bps, EBIT margin was 16.1 percent, negative 40 bps versus the same period in 2023. The company added that the combination of solid revenue growth and a sustained strong profitability helped drive 17 percent EPS growth during the quarter under review.

Pandora further said that the company is scaling up investments across all four Phoenix strategy pillars of brand, design, markets and personalisation. The company’s “core” segment delivered 2 percent LFL growth whilst the “fuel with more” segment delivered 21 percent LFL growth, in line with Pandora’s full jewellery brand vision.

Engraving services grew more than 100 percent in the quarter with roughly 1,250 engraving machines installed globally.

The company has raised its organic growth guidance to 11 to 12 percent, while the EBIT margin guidance remains unchanged at around 25 percent. Current trading in October has seen LFL growth at mid-single-digit levels.