Pandora Jumps After Jewelry Maker Increases Full-Year Forecasts
Pandora A/S, (PNDORA) the Danish jeweler known for charm bracelets, gained the most in more than a month in Copenhagen after strong sales of new products led the company to raise its full-year forecasts for revenue and profitability.
Pandora, based in Glostrup, Denmark, said revenue rose in all major regions during the first nine months of the year. The jewelry maker, which suffered a collapse in demand in the summer of 2011, has turned a page this year after introducing new products more frequently. It now issues new collections -- such as the fall Enchanted Forest charms featuring birds, leaves and owls -- seven times a year, up from twice previously.
“The autumn collection has been well received,” Nordea Bank AB analysts said in a note, adding that the upgrade to sales and profitability forecasts appears conservative.
Pandora now predicts 2013 revenue of approximately 8.6 billion kroner ($1.6 billion), up from a previous forecast of 8 billion kroner. The jewelry maker estimates its margin on earnings before interest, taxes, depreciation and amortization will be about 30 percent, having previously anticipated a margin of about 27 percent.
Pandora, which is due to report third-quarter earnings Nov. 12, said revenue for the three months ended Sept. 30 was 2.3 billion kroner, up 26 percent from a year earlier, helped by strong sales of new products and growth in new markets. The company expects to open around 195 Pandora-branded concept stores this year, up from a previous forecast of 175.
The shares were up 9.9 kroner, or 4 percent, at 259 kroner as of 11:25 a.m. in Copenhagen.
To contact the reporter on this story: Katarina Gustafsson in Stockholm at firstname.lastname@example.org