Pandora Raises 2013 Forecasts After First-Half Sales GrowthKatarina Gustafsson
Pandora A/S, a Danish maker of bracelets and charms, raised sales and profitability forecasts for 2013 after revenue rose in the first half following a product revamp.
The jewelry manufacturer anticipates revenue of about 8 billion kroner ($1.4 billion) this year, compared with a previous target of more than 7.2 billion kroner, Pandora said in a statement today. The Glostrup, Denmark-based company forecast a margin on earnings before interest, taxes, depreciation and amortization of about 27 percent, compared with previous expectations to exceed 25 percent. Pandora shares rose as much as 5 percent.
“They sent a very strong signal to the market with a very strong second quarter, way above the market expectations with good growth in major markets,’ said Soeren Loentoft Hansen, an analyst at Sydbank A/S.
The company said today that performance has been ‘‘solid’’ in the second quarter and into July, with revenue growth across all major regions. Pandora shares have advanced 78 percent this year on improved profit as the jewelry maker has cut prices and replaced unwanted products after suffering a collapse of demand two years ago.
The jewelry maker will report full second-quarter earnings Aug. 13. Pandora said revenue in the period was about 1.9 billion kroner and the Ebitda margin was about 27 percent. The average of analyst estimates compiled by Bloomberg was for second-quarter revenue of 1.57 billion kroner.
Pandora said it expects to open about 175 concept stores this year, up from previous estimates for 150, and expects capital expenditure to be about 400 million kroner instead of 300 million kroner as the company expands its production facilities in Thailand.
The shares traded 3.5 percent higher at 221.60 kroner as of 9:44 a.m. local time.