Danish jewelry maker Pandora reported a smaller than anticipated drop in third-quarter revenue on Wednesday as extra customers got here to its shops, and raised its full-year gross sales outlook, sending its shares up.
The corporate, recognized for its bracelets and charms, mentioned that natural gross sales grew by 11 p.c, beating expectations for six p.c progress, and that up to now, buying and selling within the fourth quarter was “wholesome.”
Pandora mentioned it now forecasts full-year natural gross sales progress of 5-6 p.c, up from 2-5 p.c beforehand seen, and mentioned it nonetheless expects an working revenue margin of round 25 p.c.
Shares in Pandora, which sells its jewelry in additional than 100 nations by means of 6,500 factors of sale, of which 2,500 are idea shops, had been up 5 p.c at 847 crowns at 08:29 GMT.
Working revenue fell to 920 million crowns ($132 million) from a year-earlier 978 million as prices rose, though this additionally beat analyst expectations for a revenue of 875 million crowns in a ballot printed by Pandora.
Enchancment in like-for-like gross sales was pushed by the US, as site visitors picked up within the area given current model initiatives. “That is robust within the context of an general risky retail surroundings,” JPMorgan analysts mentioned in a observe.
“Our investments within the model are attracting extra shoppers into our shops,” CEO Alexander Lacik mentioned in a press release.
The reasonably priced luxurious model mentioned its gross margin reached a document 79 p.c, helped by value financial savings and worth hikes.
The working margin nonetheless fell, attributable to increased commodity costs and overseas change charges, however the group mentioned it expects the web impression of those to show optimistic within the fourth quarter.
The group mentioned that within the third quarter there had been an sudden pick-up in demand throughout markets and collections pushed by vacationers — a summer season vacation sample it mentioned might not repeat itself within the corresponding quarter subsequent 12 months.
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