Pandora welcomes ‘strong’ performance in 2024 despite growth hit in core markets

Pandora has reported “solid growth” throughout 2024, a year in which it took its first steps to reposition as a “full jewellery brand”, the second phase of its ongoing ‘Phoenix’ business strategy. The company ended the year with “record-high” revenue of DKK 31.7 billion (3.6 billion pounds), reflecting a growth of 13 percent over the period. This came above Pandora’s previously anticipated growth range of 11 to 12 percent, thus beating expectations.

According to the company, such growth shows “that the significant investments across the organisation are yielding positive results”, its end of year report stated. These include restaging the brand, expanding its store network and bolstering technology and people. “These investments are attracting more customers to the Pandora brand, both new and returning, while driving consistent brand heat, as evidenced by rising unaided awareness and consideration,” the report added.

During 2024, Pandora’s EBIT came to 25.2 percent, marginally beating forecasts, while its gross margin of 79.8 percent increased slightly on last year’s 78.6 percent. The company’s ‘Core’ segment, representing charms and carriers, made up 74 percent of revenue, welcoming like-for-like growth of 2 percent. ‘Fuel with more’, meanwhile, contributed to 26 percent of revenue, increasing on last year’s 22 percent. Growth in both segments “is the result of deliberate strategic efforts and targeted initiatives to strengthen our brand and position,” Pandora said.

Pandora plans store closures in China while US market prevails

Things were a little more unsteady when looking at certain geographies among Pandora’s operating regions. While growth was driven by what the company said was a “sustained global brand momentum, which boosted traffic and enabled Pandora to capture market share”, an uncertain consumer environment was reflected in some of the more lacklustre results of certain markets. The US, where the company has zoned in on expanding its store network, reported “strong” like-for-like growth, despite a turbulent period for local consumers.

Key European markets, meanwhile, saw a like-for-like uptick of 4 percent, largely driven by Germany, which delivered a growth of 45 percent. Elsewhere, however, things looked a little less positive. In France, growth declined 5 percent, while in the UK it fell 2 percent and in Italy it decreased 7 percent. Australia was also impacted by “low consumer sentiment and subdued purchasing power” resulting in a growth decline of 4 percent. This contrasted the ‘Rest of Pandora’, where growth rose 13 percent across regions like Spain, Canada, Mexico and Poland.

Pandora’s China business, however, was the worst to be hit. Growth here came to minus 21 percent as the region navigates its recovery from the pandemic. The company noted that it remained committed to China, yet revealed that in 2025 it plans to close at least 50 stores across the country. This “has minimal impact on the growth from network expansion” for the year, Pandora noted.

For 2025, Pandora said it was currently targeting organic growth between 7 and 8 percent and a “flattish” EBIT margin of around 24.5 percent. Furthermore, the company is anticipating like-for-like growth of 4 to 5 percent, falling in line with the range reported during its Capital Markets Day in 2023 of a 4 to 6 percent CAGR, yet coming in slightly lower at the higher end, “reflecting the macroeconomic and geopolitical uncertainty”.