Pandora posts record Q1 revenue, ups FY sales outlook despite ongoing uncertainty

Danish jewellery giant Pandora has reported record revenue in the first quarter of the year and upped its full-year sales guidance despite warning of ongoing uncertainty surrounding Covid and Russia’s war in Ukraine.

Pandora’s revenue in the quarter came in at 5.7 billion Danish krone (765 million euro), up 21 percent on an organic basis compared to the prior year, and up 18 percent compared to pre-pandemic 2019 levels.

Pandora CEO and president Alexander Lacik Pandora told investors: “We are very pleased with the strong start to the year delivering record revenue for the first quarter. All our product platforms support the growth in Q1, as our ability to continuously offer new innovation pays off.”

Revenue in the company’s home market of the US was up 7 percent year-over-year and up 62 percent compared to 2019 levels.

In the UK, revenue was up 32 percent year-over-year.

The company also saw strong double-digit growth in Italy, France and Germany, where sales were up 33 percent, 35 percent and 43 percent, respectively.

In Australia, sales were flat on the previous year.

Covid impacts China sales

In China, where recent Covid spikes continue to impact the business, revenue was down 18 percent.

The company expanded its net profit in the quarter to 995 million Danish krone compared to 628 million Danish krone a year earlier.

For the full year, Pandora now expects organic sales growth to be between 4 and 6 percent, up from the previous guidance of between 3 and 6 percent.

But it did warn of continued uncertainty related to the impact of Russia’s war in Ukraine, cost inflation and Covid-19.

Its annual EBIT margin guidance was unchanged at between 25 and 25.5 percent.