Danish jeweller Pandora raises sales forecast

Danish jeweller Pandora raised its annual sales forecast for the second time this year as it ramps up store openings amid strong demand for charm bracelets.

Full-year revenue will exceed 16 billion Danish kroner (€2.1 billion), compared with a May 12th forecast of more than 15 billion kroner. The average of 14 analyst estimates compiled by Bloomberg is for 15.8 billion kroner.

Growth is being driven "by a combination of network expansion and strong like-for-like growth," chief executive Anders Colding Friis said. Initiatives such as the rollout of the retailer's online business and a collaboration with Walt Disney also helped improve revenue, said Mr Friis, who joined the company this year.

The shares rose 0.7 per cent to 783.50 kroner in early morning trading in Copenhagen. They have risen more than 20-fold since an August 2011 profit warning as Pandora has recovered from a collapse in demand by introducing products more frequently.

Stronger sales

At 11.9 billion kroner, the jeweller’s 2014 sales were almost double the 6.65 billion kroner of 2012. The second quarter was slightly better than expected with

Europe

, and especially the UK, delivering stronger sales than anticipated. Net income rose 37 per cent to 910 million kroner in the three months through June, Pandora also said. Items introduced in the past year, such as Disney-themed products, accounted for 50 per cent of sales in the quarter. Revenue rose 41 per cent to 3.6 billion kroner with a 44 per cent increase in the Americas and a 38 per cent increase in Europe.

This year’s margin on earnings before interest, taxes, depreciation and amortisation is still estimated to widen to about 37 per cent of sales from 36 per cent last year. The Danish company said it anticipates adding more than 375 new Pandora-branded stores this year.

– (Bloomberg)