Pandora delivers 11% organic growth in Q3
Engraving services, in particular, are gaining traction, growing more than +100% in Q3 2024 with roughly 1,250 engraving machines installed globally.
Pandora has welcomed organic growth of 11% in its third quarter, as like-for-like sales grew by 7% to 6.1bn DKK (£681m), and operating profit rose to 980m DKK (£109m), up from 920m DKK (£102m) the prior year.
Like-for-like growth in key European markets hit 4%, while growth in the US remained solid at 6%. Other regions reported double-digit growth at 14%.
Its Q3 gross margin reached 80.1%, +110bp compared with Q3 2023, supported by Pandora’s vertically integrated business model, price increases and cost efficiencies.
Pandora stated that the combination of solid revenue growth and a sustained strong profitability helped drive 17% Y/Y EPS growth in Q3 2024.
It continues to execute on its Phoenix strategy and change the perception of Pandora into a full jewellery brand.
As a result Pandora has scaled up investments across all four Phoenix strategy pillars of brand, design, markets and personalisation. The investments are yielding encouraging responses, according to the group.
The Pandora Essence collection completed its first entire quarter after the global launch in mid-Q2 2024. The new organic, fluid and natural aesthetic has driven revenue of DKK 169m (£18.59m).
Personalisation services are also driving incremental growth. Engraving services, in particular, are gaining traction, growing more than +100% in Q3 2024 with roughly 1,250 engraving machines installed globally.
Looking ahead, the group stated that higher commodity prices are expected to drive a 360bp headwind to the 2026 EBIT margin target of 26-27%.
It confirms mitigating actions to cover at least 140bp of the headwind. Additionally, the organic growth guidance is lifted to 11-12% (the high end of the previous guidance at 9-12%).
However, the EBIT margin guidance remains unchanged at around 25%.
Lastly, current trading in October has seen LFL growth at mid-single-digit levels, in line with the underlying trends witnessed since the start of the year.
Alexander Lacik, president and CEO of Pandora, said: “We are very pleased with our strong results this quarter, particularly in the context of the current macroeconomic backdrop. We are transforming the perception of Pandora into a full jewellery brand and unlocking the next chapter of our growth by attracting more consumers to our brand. Step by step we are capturing the many untapped opportunities, and we will continue to invest in our strategic growth initiatives.”
