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Jewellery maker Pandora lifts outlook as U.S. sales continue to surprise

Jewellery maker Pandora lifts 2021 outlook
Jewellery maker Pandora lifts 2021 outlook   -   Copyright  Thomson Reuters 2021
By Reuters

COPENHAGEN – Pandora, the world’s largest jewellery maker by production capacity, on Monday lifted its sales and profit margin outlook for the year, citing a strong performance in the third quarter.

Pandora has benefited as shops reopened this year after lockdown restrictions and has seen its sales top pre-pandemic levels as U.S. shoppers in particular have splashed out as massive government stimulus and vaccinations against COVID-19 fuelled spending on goods and services.

For 2021, the Danish company now expects organic sales growth of 18-20%, up from a previous forecast of 16-18%, and an earnings before interest and tax (EBIT) margin of 24-24.5%, up from a previously forecast 23-24%.

COVID-19 and the unusually high level of U.S. growth continue to create increased uncertainty around the guidance,” it added.

Pandora, best known for its silver charm bracelets, said third-quarter sales came in at 4.73 billion Danish crowns ($734.92 million), beating the 4.67 billion expected by analysts in a poll compiled by the company.

It reported quarterly EBIT of 957 million crowns, which was above the 917 million expected by analysts, and resulted in an EBIT margin of 20.2%.

“Revenue growth and the EBIT margin were lifted by continued strong U.S. performance and a sequential improvement in Europe as COVID-19 restrictions were eased,” Pandora said.

The firm will report full third-quarter earnings on Nov. 3.