Pandora Raises Guidance After Strong Q1

Copenhagen, Denmark—Pandora started off its fiscal year on a high note, reporting double-digit revenue growth in Q1.

First-quarter revenue was up 17 percent year-over-year at actual exchange rates (18 percent on an organic basis) to 6.83 billion Danish kroner ($980.5 million), with like-for-like sales growth of 11 percent.

The new “Be Love” campaign bolstered Pandora’s brand strategy, it said, which aims to reframe consumer perception of the company as a full jewelry brand, rather than just a company that just sells beads and charms.

The campaign resonated with customers and drove like-for-like growth across its collections, Pandora said.

Like-for-like sales were up 3 percent for its core segment, which includes its “Moments” and “Me” collections and its collaborations. 

Its “fuel with more” segment, which includes its lab-grown diamond jewelry as well as its “Timeless” and “Signature” collections, saw sales grow 34 percent in the quarter.

Sales of its lab-grown diamond jewelry collection totaled 63 million Danish kroner ($9 million) in the quarter, with like-for-like growth of 87 percent.

Pandora’s lab-grown jewelry is now sold in 700 stores in the United States, Canada, United Kingdom, Australia, Mexico and Brazil, with North America continuing to account for the largest proportion of revenue, said Pandora.

The company also expanded its store network, opening net 19 new concept stores and seven Pandora-owned shop-in-shops.

Pandora reiterated plans to open net 75 to 125 net concept stores and 25 to 50 Pandora-owned shop-in-shops in 2024.

In the U.S., momentum remained strong, said Pandora, with 9 percent like-for-like growth. 

Its key European markets also performed well, with 9 percent like-for-like growth, with Germany as the standout, posting 67 percent like-for-like growth.

“We are very pleased with our start to the year, as we embark on the next chapter of ‘Phoenix.’ Whilst jewelry markets around us generally remain subdued, our ongoing brand investments allow us to take market share,” said Pandora CEO Alexander Lacik.

“We raise our revenue guidance and look forward to keep fueling our growth with exciting strategic initiatives over the coming years.”

Pandora now expects to see organic growth of 8 to 10 percent, up from its prior guidance of 6 to 9 percent. Its EBIT margin guidance is unchanged at around 25 percent.

So far in Q2, Pandora said sales are “healthy,” with high single-digit like-for-like growth. 

The company’s Q2 results are set to be released Aug. 13.