May 14 (Bloomberg) -- Pandora A/S, a Danish maker of bracelets and charms, reported first-quarter profit that exceeded analyst estimates as its new products sold well. The stock surged 14 percent to its highest in almost two years.
Net income rose to 438 million kroner ($76.4 million) from 338 million kroner a year earlier, the Glostrup, Denmark-based company said in a statement today. The average estimate in a Bloomberg survey of seven analysts was 346 million kroner.
“Revenue and earnings increased across all regions,” Chief Executive Officer Bjoern Gulden, who will leave this summer to become CEO at sporting-goods maker Puma SE, said in the statement. Most of the increase was “due to better products, improved marketing and better execution in the stores.”
Sales rose to 2 billion kroner, from 1.42 billion kroner a year earlier, beating the 1.68 billion kroner that analysts estimated. The company maintained its forecast for full-year revenue to exceed 7.2 billion kroner. Chairman Allan Leighton will replace Gulden on July 1, the company said last month.
Pandora’s U.S. performance was “solid” and the company “turned the tide” in Germany and Australia, said Michael Vitfell-Rasmussen, an analyst at ABG Sundal Collier.
Operating expenses were “significantly lower” than expected, “costs are coming down and the topline is coming up and this is giving them a fantastic leverage,” he said.
Pandora gained 20.70 kroner, or 11.2 percent, to 205.80 kroner at 10:47 a.m. in Copenhagen. The stock has advanced 63 percent so far this year.
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