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Pandora Ups Full-Year Forecast as Sales Rise
Aug 9, 2021 5:19 AM
By Rapaport News
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RAPAPORT... Pandora has increased its sales outlook for the current year following strong growth in the past quarter and a reduction in the number of stores it expects to close.
Sales will rise by 16% to 18% year on year on an organic basis for 2021, the Danish jewelry retailer predicted Friday. That compares with a previous forecast of above 12%.
The update came on the back of an 84% year-on-year sales jump on an organic basis in the second quarter ending June 30. Sales were 13% higher than in the same period of 2019, the company reported. Organic growth reflects sales in local currencies after adjusting for changes to the company’s structure, such as the addition or removal of distributors and franchisees.
“Continued strong US performance and a sequential improvement in Europe as Covid-19 restrictions were eased lifted both revenue growth and EBIT [earnings before interest and taxes],” the jeweler said.
The pandemic will likely shutter or severely impact only 5% of stores in the second half, down from a previous estimate of 5% to 10%, Pandora added. Currently, around 6% of stores are temporarily closed or significantly affected, down from an average of 15% during the second quarter.
Still, the coronavirus will lower organic growth by around six percentage points for the full year, Pandora projected.
The company is scheduled to release its full financial results for the second quarter on August 17.
Image: A Pandora store. (Pandora)
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Tags:
Coronavirus, COVID-19, Europe, Jewelry, Pandora, Rapaport News, retail, US
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