Pandora's 2020 Results to Beat Forecast

RAPAPORT...Pandora expects its full-year results for 2020 will exceed the company's earlier predictions, as strong sales in the fourth quarter outweighed the negative impact of coronavirus restrictions.The Danish jeweler expects revenue growth to be at least one percentage point better than the high end of its guidance range, it said Wednesday. It initially predicted sales would drop 14% to 17%. The retailer's earnings before interest and taxes (EBIT) margin is also expected to beat the top end of Pandora's 17.5% to 19% forecast."Pandora started [the fourth quarter] with positive growth in October and November," the company noted. "December was impacted by phasing of revenue from December to November, but underlying performance continues to be solid, and December revenue is above expectations."The rise in sales was largely due to a reallocation of consumer spending away from travel and services toward gifts and discretionary goods, Pandora said. That revenue more than made up for the fact that the pandemic forced the company to close 10% of its brick-and-mortar stores temporarily during the fourth quarter.Pandora will release its full results on February 4, it said. Image: A Pandora charm. (Pandora)