It is a positive moment for the jewelry sector and Pandora is also reaping the benefits. The financial statement data relating to the third quarter of the year indicate organic growth of +11%, which becomes +9% with the perimeter unchanged. The expansion of the network, underlines Pandora, has led to +4% growth. In particular, the Danish company in Europe records +4%, in the United States an improvement to +5% and the Rest of Pandora continues its strong momentum with +22%. Also according to financial data, the gross margin reached an all-time high of 79.0%, thanks to the mix of channels, cost efficiency and price increases.
The Ebit profitability indicator is also high, at 16.5% in the 2023 quarter, in line with expectations and for the whole year it will stand at around 25%. It should be noted, for those interested in purchasing not the jewels, but the Pandora shares, that the buy back has reached 4.3 billion Danish crowns since last February 8, with a total purchase forecast of 5.0 billion by February 2024.
In other news: Pandora has kicked off a new chapter in Phoenix’s strategy to transform the perception of the company as a complete jewelry brand and accelerate growth. The increased investments in the brand are already yielding good results, with the launch of several global campaigns and events in the fashion world which have led to greater consumer involvement in all the main touchpoints. Moments and Pandora ME delivered +7% and +12% growth, respectively, while Timeless continued to post even stronger growth of +21%. Lab-grown diamond jewelry generated +84% sales, despite starting from a low base.
We are very pleased with this quarter’s results. Our brand investments are attracting more consumers to our stores. We have achieved strong growth at scale, while our record-high gross margin underpins our unique business model. We have raised our full-year guidance and continue to see very compelling opportunities for Pandora just as we begin the next chapter of our growth strategy.
Alexander Lacik, President and CEO of Pandora