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Reuters
Published
Nov 6, 2012
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Pandora lifts outlook after strong quarter

By
Reuters
Published
Nov 6, 2012

COPENHAGEN - Danish jewelery maker Pandora raised its full-year outlook after quarterly results beat expectations, helped by strong sales in Europe and the United States and lifting its shares.


(photo: Pandora)

"Even in a difficult retail environment, our major markets have all positive or improved like-for-like sales in the Concept stores," chief executive Bjorn Gulden said on Tuesday.

Pandora said 2012 revenue should top 6.3 billion Danish crowns ($1.1 billion), up from an earlier forecast for over 6 billion. It saw its EBITDA margin in the "mid 20s" percent, compared with the "low 20s" previously.

Its third-quarter earnings before interest and tax (EBIT) fell 8.5 percent to 463 million Danish crowns, beating all forecasts in a Reuters poll in which the average estimate was 316 million.

Revenue rose 14 percent to 1.79 billion crowns, compared with a forecast for 1.56 billion. U.S. sales rose 22 percent while Europe sales saw a 13 percent rise, cushioning a decline in the Asia Pacific region.

Pandora shares were up 14 percent in early trading.

A campaign launched to help kickstart sales that hit third-quarter profit was now largely concluded, Pandora said.

So far this year, the group had received returns of discontinued products worth 609 million crowns, and replaced products worth 599 million.

The stock return campaign was launched in February after Pandora last year cut its outlook, sacked its CEO, and said it had priced itself too high to a core clientele to whom it aimed to sell "affordable luxury".

The campaign offered retail outlets the chance to swap items consumers were not buying for jewellery that sells better, at a cost of 700-800 million crowns in 2012. ($1 = 5.8353 Danish crowns) (Reporting by Mette Fraende; Editing by Dan Lalor)

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