Stimulus, indeed. Pandora is the latest European fashion firm to credit robust U.S. business for second-quarter gains.
The Danish jewelry maker said sales in the three-month period zoomed 84 percent versus a year ago and 13 percent versus 2019, prompting it to raise its forecasts.
It now expects organic revenue growth of 16 to 18 percent for full-year 2021, versus prior guidance of 12 percent, and an EBIT margin of 23 to 24 percent, versus 22 percent previously.
While stimulus packages added to the “underlying strong performance” in America, Pandora said China remains weak and it will take “first steps to reposition the brand” in the second half.
The company cited sequential improvement in Europe as pandemic restrictions eased. About 15 percent of its physical stores were closed for part of Q2 and 8 percent remain shuttered temporarily.
Meanwhile, online sales rocketed 132 percent in the quarter versus the same period in 2019.
EBIT margin during the three months stood at 25.2 percent, “lifted by unusually strong U.S. growth,” Pandora noted.
Pandora is to host a press conference to elaborate on the results at 11 a.m. CET.
The company is planning a capital markets day in September to “present how Pandora will drive long-term sustainable and profitable growth, building on the vast untapped opportunities within our existing business,” said Alexander Lacik, president and CEO of the company.
Last May, it unveiled a two-year turnaround plan dubbed Phoenix to stabilize the top line, increase brand relevance and access, and reduce costs.
Among initiatives under this new strategy is Pandora Brilliance, sustainably laboratory-created diamonds. It is currently being tested in the U.K. and “progressing well,” according to the company.
Separately on Tuesday, the company unveiled a new share buyback program under which Pandora will repurchase shares for an aggregate maximum amount of 500 million Danish kronor. The program is to commence on Aug. 18 and conclude no later than Oct. 29.
Pandora Q1 Revenue Grows 13% at Constant Rates
Pandora Raises Guidance for 2021
Pandora Names Alexander Lacik CEO
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