Pandora Lifts Full-Year Forecast Again

RAPAPORT... Pandora has increased its sales outlook for the current year for the second time in four months following strong growth in the US in the third quarter.Sales will rise by 18% to 20% year on year on an organic basis for 2021, the Danish jewelry retailer predicted Monday. That compares with a previous forecast of 16% to 18%. Pandora now expects revenue for the full year to be between DKK 22.4 billion and DKK 22.8 billion ($3.49 billion and $3.55 billion), it noted.The update came on the back of a 14% year-on-year sales jump on an organic basis to DKK 4.73 billion ($736.3 million) in the three months ending September 30. Sales were 9% higher than the same period of 2019, the company reported. Organic growth reflects sales in local currencies after adjusting for changes to the company's structure, such as the addition or removal of distributors and franchisees.Growth during the period was led by the Moments collection of charms. The jeweler also recorded positive momentum in the US - its largest market - which accounted for 28% of revenue during the period, compared to 22% the previous year."The US represents a strategic priority for Pandora, and the strong performance is encouraging," the company explained. "The long-term aim is to double the US business versus 2019. Market data continues to suggest that Pandora US is growing faster than the market."The jeweler also experienced a solid performance in Europe, as pandemic-related restrictions eased and its network reopened. However, sales in China and Asia Pacific faltered amid typhoons and a resurgence of Covid-19. Although the company's stores were open, foot traffic fell 50% from 2020 levels.Online sales rose 2% year on year in the third quarter and 98% versus 2019, representing 18% of total revenue for the period. Profit surged 85% to DKK 635 million ($98.9 million).The company will launch its Pandora Brilliance collection of lab-grown diamond jewelry globally in 2022, it said. The jeweler has been testing the line in the UK since early May and saw positive market sentiment, it added.Image: Jewelry from the Moments collection. (Pandora)