2024 promises to be a golden year for Pandora. The first quarter results of the Danish jewelry group have their foot pressed on the accelerator. The second phase of the strategy which Pandora called Phoenix, according to the company, increased the desirability of the brand and the perception towards the brand itself. This is demonstrated by an organic growth of 18%, which is 11% if we take into account the same business perimeter, given that the expansion of the network brought growth of +5%. In absolute terms, turnover increased by 1 billion to approximately 135 million euros. Growth in the main European markets is 9%, as well as in the United States, but soars in the rest of the world at +18%. Other financial data: the gross margin (i.e. sales minus costs) in the quarter was 79.4%, thanks to the mix of sales channels, pricing and efficiencies, as well as a boost in silver prices and of foreign exchange rates.
This means, in practice, that on a jewel sold for 10 euros (for example), the production cost is only 20.6 euros. However, if the Ebit margin (i.e. the profit before taxes and interest expense) is calculated, the profit is reduced to 22%, an increase of 0.5% compared to the previous year. The first quarter results are also an opportunity to take stock of Pandora’s strategies. The company’s goal is centered on evolving the perception of Pandora into a complete jewelry brand, which officially began with the launch of the new multi-seasonal marketing campaign Be Love. The Timeless line continued its positive momentum with growth of 43% and Pandora Lab-Grown Diamonds also saw a significant growth progress of 87%. For these reasons, Pandora expects growth of 8-10% for 2024.”
We are very pleased with our start to the year as we head into Phoenix’s next chapter. While the jewelry markets around us remain generally subdued, our continued brand investments allow us to gain market share. We are raising our revenue forecasts and look forward to continuing to fuel our growth with interesting strategic initiatives in the coming years.
Alexander Lacik, President and CEO of Pandora
