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Pandora has reported a 15% increase in Q2 2024 organic growth to DKK 6.77bn (£744m), comprising Like-for-like (LFL) growth of 8%, network expansion of 6% and 1% phasing of sell-in to partners and other.
The group’s operating profit (EBIT) also increased from DKK 1.18bn (£134.9m) to DKK 1.33bn (£152m). However its EBIT margin was 19.8%, -40bp compared with Q2 2023.
Its UK LFL sales increased by 1% to DKK 694m (£79.36m). The group stated that the region’s performance was still ahead of the market which is being impacted by dampened consumer sentiment.
Meanwhile, the US LFL rose 5% to DKK 2.1bn (£240m) whilst Rest of Pandora reported a double-digit growth of 13% to DKK 2.28bn (£260m).
Pandora’s gross margin reached an all-time high of 80.2%, a 210bp increase, which was driven by favourable pricing, efficiencies at the crafting facilities and channel mix.
During the second quarter of 2024, Pandora added a net of 25 concept stores and 20 Pandora owned shop-in-shops to the network.
Looking ahead, the jewellery brand has raised its organic growth guidance to be 9-12% (previously “8-10%”).
However, the EBIT margin guidance remains unchanged at around 25%. Additionally, the group added that the current trading in Q3 “remains healthy” with an underlying LFL growth at mid-single digit levels.
Alexander Lacik, president and CEO of Pandora, said: “Our strategy continues to take Pandora to new heights despite general consumer spending being somewhat sluggish.
“We have successfully started the journey to make Pandora known as a full jewellery brand, and our results show that consumers like what they see. Thanks to our strong performance, we are again raising revenue guidance for 2024 and look to the second half of the year with optimism.”
