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Pandora Results Beat Forecast Amid Sales Surge
Jan 11, 2022 9:23 AM
By Rapaport News
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RAPAPORT... Pandora’s full-year results for 2021 have exceeded the company’s earlier predictions, as strong sales in the fourth quarter outweighed store closures and the negative impact of coronavirus restrictions.
Revenue for 2021 jumped 23% year on year on an organic basis to DKK 9 billion ($1.37 billion), surpassing the 18% to 20% rise the company originally forecast, Pandora said Monday. The strong results come after the jeweler already upped its guidance for the full year twice. The proceeds for both the full year and the fourth quarter are the highest ever for Pandora, it noted.
Sales for the full year were also 9% higher than 2019 levels, while fourth-quarter revenue surged 10% year on year and 15% compared to 2019.
The retailer’s earnings before interest and taxes (EBIT) margin — the measure of a company's operating profit as a percentage of its revenue — climbed to 25%, just above its 24.5% high forecast.
“The [fourth quarter] was another strong quarter...with robust and broad-based growth across most key markets,” Pandora said. “Revenue in the fourth quarter, as well as for the full year of 2021, is the highest ever.”
The rise in sales is largely due to strong spending in the US market, which soared 58% in organic terms versus the previous year and 56% relative to 2019. That rise offset a 13% year-on-year drop in China.
However, even as the company delivered positive results, it was concerned the rise of Covid-19 cases would affect its 2022 revenue.
“On average, a low-single-digit percentage of the physical stores were temporarily closed during the fourth quarter due to Covid-19,” Pandora noted. “Furthermore, physical stores in a number of markets were negatively impacted by other restrictions, not least in China. The recent escalation of Covid-19 continues to drive some uncertainty with regards to financial performance in 2022.”
Pandora will release its full results on February 9, it added.
Image: A Pandora charm. (Pandora)
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Tags:
COVID-19, Danish jeweler, Jewelry, Pandora, Rapaport News
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