The Danish jewelry brand Pandora reported solid performance in the second quarter of 2024. The company’s organic growth rate reached 15%, with global sales totaling 6.771 billion Danish kroner (approximately $991.7 million). The brand’s momentum and strong in-store foot traffic significantly contributed to the revenue increase.
In light of this strong performance, Pandora has revised its full-year organic growth forecast for the second time this year, predicting a rate of 9-12%, up from the previous estimate of 8-10%. As a result, Pandora’s stock price rose by 3.7% during trading hours on August 13th.
Pandora’s unique charms remain popular, with the charm business recording a 1% year-over-year growth in the second quarter, while non-charm products saw a 29% increase. Additionally, the company’s growth strategy, “Phoenix,” continues to expand its market share in the jewelry sector. Pandora has built a vertically integrated value chain from design and manufacturing to direct sales, leveraging economies of scale to maintain cost advantages while delivering a world-class consumer experience.
Regarding regional markets for the second quarter, the U.S. achieved 14% growth, maintaining its position as Pandora’s largest market. In Europe, Germany saw an astonishing 65% year-over-year growth, boosting brand awareness and purchase intent. However, the Chinese market faced challenges, with a 23% decline due to weakened consumer purchasing power.
Pandora’s President and CEO, Alexander Lacik, stated, “Our strategy continues to take Pandora to new heights despite general consumer spending being somewhat sluggish. We have successfully started the journey to make Pandora known as a full jewellery brand, and our results show that consumers like what they see,” expressing optimism about the company’s future growth.
The company has further raised its full-year growth outlook for 2024, forecasting an organic growth rate of 9-12% and an EBIT margin of around 25%. Pandora aims to maintain high profitability while achieving sustainable growth.
Furthermore, the company is focused on brand restructuring and expanding its store network, planning to open 1,375 to 1,425 new stores worldwide by 2026. The rollout of the new “Evoke 2.0” concept stores is also progressing, providing a consistent brand experience to consumers and driving further growth.