1. News
May 5, 2022

Pandora reports 21% organic growth in first quarter of FY22

The retailer expects an organic growth rate of between 4% and 6% for the full year.

Danish jewellery manufacturer and retailer Pandora has generated kr5.7bn ($811.68m) in sales in the first quarter (Q1) of the fiscal year 2022 (FY22).

The company’s organic growth for the three-month period was 21% compared with 13% in the same period of the prior year.

During the quarter, Pandora’s online sales declined by 17% against the same period of 2021, but were up by 155% from two years previous.

The retailer’s operating profit for the period rose to kr1.31bn from kr903m in Q1 2021.

Its earnings before interest and taxes (EBIT) margin were 23.0%, up from 20.1% a year earlier.

Pandora president and CEO Alexander Lacik said: “We are very pleased with the strong start to the year delivering record revenue for a first quarter.

“All our product platforms support the growth in Q1, as our ability to continuously offer new innovation pays off.

“Execution of the Phoenix strategy continues at high pace, and I am encouraged by the growth opportunities we have ahead of us.

“For the last two years, we have invested in building a stronger organisation, and this is increasingly visible in the numbers and how we drive the company forward.”

For FY22, Pandora has raised its full-year organic growth forecast to 4-6% from the previous 3-6%, while its EBIT margin guidance remains unchanged at 25.0-25.5%.

This increase in outlook comes despite the impact of geopolitical conflict cost inflation and potential impacts on consumer demand from inflation and higher interest rates.

Pandora has suspended all its business with Russia and Belarus, which collectively account for around 1% of its total revenue.

In March, the jewellery brand acquired 37 franchise locations in North America from US-based jewellery retailer Ben Bridge Jeweler.

The franchise stores include five Pandora-owned and operated stores in Canada, as well as 32 outlets located across Arizona, California, Hawaii, Oregon and Washington.