Pandora Forecasts Sales and Margin Increase After Strong Holidayby
Pandora A/S, the Danish maker of charm bracelets, forecast revenue growth and profit margin expansion in the year ahead after reporting full-year earnings that met analysts’ estimates.
Operating profit rose 43 percent to 5.81 billion kroner ($873 million), the Glostrup-based company said in a statement Tuesday. The average of 11 analyst estimates compiled by Bloomberg was 5.87 billion kroner. Sales this year will rise at least 14 percent to 19 billion kroner, Pandora forecast, while profit margins will exceed 37 percent, helped in part by lower commodity costs.
The “great” performance last year was “broadly distributed between geographic regions and product groups, all delivering double digit growth rate,” Chief Executive Officer Anders Colding Friis said in the statement. The company previously said it had a strong holiday season as it added online shopping in the U.S. for the first time.
The company, which added 400 stores last year, also said it would buy back as much as 4 billion kroner of its shares. Pandora shares, which rallied 73 percent in 2015, have dropped 12 percent in the last five trading days.