Jeweler Pandora Raises Guidance Again as Earnings Beat ViewsKatarina Gustafsson
Pandora A/S raised its annual sales forecast for the second time this year as the Danish jeweler ramps up store openings amid strong demand for charm bracelets.
Full-year revenue will exceed 16 billion kroner ($2.4 billion), compared with a May 12 forecast of more than 15 billion kroner, the Glostrup, Denmark-based company said in a statement Tuesday. The average of 14 analyst estimates compiled by Bloomberg is for 15.8 billion kroner.
Growth is being driven “by a combination of network expansion and strong like-for-like growth,” Chief Executive Officer Anders Colding Friis said in the statement. Initiatives such as the rollout of the retailer’s online business and a collaboration with Walt Disney Co. also helped improve revenue, said Friis, who joined the company this year.
The shares rose 0.7 percent to 783.50 kroner as of 9:51 a.m. in Copenhagen. They have risen more than 20-fold since an August 2011 profit warning as Pandora has recovered from a collapse in demand by introducing products more frequently. At 11.9 billion kroner, the jeweler’s 2014 sales were almost double the 6.65 billion kroner of 2012.
The second quarter was slightly better than expected with Europe, and especially the U.K., delivering stronger sales than anticipated, Jesper Christensen, an analyst at Alm. Brand A/S, said in a note. A forecast upgrade was expected, he said.
Net income rose 37 percent to 910 million Danish kroner in the three months through June, Pandora also said Tuesday. The average of nine analysts’ estimates compiled by Bloomberg was for 888 million kroner.
Items introduced in the past year, such as Disney-themed products, accounted for 50 percent of sales in the quarter. Revenue rose 41 percent to 3.6 billion kroner with a 44 percent increase in the Americas and a 38 percent increase in Europe.
This year’s margin on earnings before interest, taxes, depreciation and amortization is still estimated to widen to about 37 percent of sales from 36 percent last year.
The Danish company said it anticipates adding more than 375 new Pandora-branded stores this year, compared with a previous forecast for more than 325.
Pandora will take over distribution in Singapore, Macau and the Philippines from Norbreeze Group, the jeweler also said in a separate statement Tuesday.
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