08
Jan

Pandora’s Stellar Performance: 8% Annual Growth, $1.58 Billion in Q4 Revenue, and 80% Surge in Pandora’s Stock

PANDORA’S STELLAR PERFORMANCE: 8% ANNUAL GROWTH, $1.58 BILLION IN Q4 REVENUE, AND 80% SURGE IN PANDORA’S STOCK

8th January 2024

Danish jewellery giant Pandora, having more than 2,500 stores across the globe announced on a significant increase in its market share, attributing this growth to effective marketing strategies and collaborations with celebrities like Pamela Anderson

The brand, famous for its bracelets and charms, reported a 12% increase in organic sales from October to December of the previous year, leading to an 8% annual growth. This surpasses Pandora’s initial growth forecast of 5%-6%, projected in early November.

Anders Boyer, Pandora’s Chief Financial Officer, remarked in an interview, “It seems that Pandora is solely driving this organic growth. Considering the data available, the global jewellery market has generally seen a downturn.”

Pandora’s stock has witnessed a remarkable 80% rise over the past year. On Monday, the stock climbed 2.6% by 0844 GMT, marking its highest value since June 2016.

The company’s increased market appeal can be attributed to its marketing efforts, which include sponsoring fashion shows, securing features in fashion magazines, and engaging with celebrities and influencers. These strategies have significantly boosted customer visits to Pandora’s over 2,500 stores globally, especially in the United States, its largest market.

“Pandora has consistently been the most recognizable jewellery brand globally, and this hasn’t changed. What has evolved over the past year is our increased focus and investment in enhancing the brand’s allure,” Boyer stated.

The brand’s lab-made diamonds collection, particularly promoted by former “Baywatch” star Pamela Anderson, has also been a success.

In financial terms, Pandora’s full-year operating profit margin met its November expectations, standing at 25%, after achieving 34% in the fourth quarter. The fourth quarter revenue was approximately $1.58 billion (10.8 billion Danish crowns), an increase from about $1.45 billion (9.9 billion crowns) the previous year. Earnings before interest and tax (EBIT) climbed to approximately $542.33 million (3.7 billion crowns) from about $469.60 million (3.2 billion crowns).

For the full year, revenue reached approximately $4.12 billion (28.1 billion crowns), up from about $3.89 billion (26.5 billion in 2022), and EBIT rose to approximately $1.03 billion (7.0 billion crowns) from about $982.38 million (6.7 billion crowns).