Jewellery maker Pandora is expected to see a resurgence in sales growth this year, marking a significant milestone after three years of decline. Despite the ongoing closures of physical stores due to the pandemic, the company experienced a strong finish to 2020, driven by a surge in online sales and increased spending on gifts and discretionary items. Online sales more than doubled, accounting for almost one-third of total sales and compensating for the loss of revenue from brick-and-mortar stores.

CEO Alexander Lacik highlighted the rise in committed customers during lockdowns. Even though physical gatherings are restricted, people still want to celebrate special occasions, leading to an increase in demand for Pandora’s products. This trend is expected to continue even after restrictions are lifted, providing a steady revenue stream for the company.

One of the reasons behind Pandora’s success is its positioning as the world’s largest jewellery maker, bridging the gap between affordable accessories found in stores like H&M and high-end jewellery from brands like Tiffany & Co. Despite the expectation that roughly 25% of its global store network will remain closed in the first half of 2021, Pandora aims for positive revenue growth and targets an EBIT margin above 21%, slightly higher than last year but lower than in 2019.

In the final quarter of 2020, Pandora reported a 1% decline in sales to 7.89 billion Danish crowns ($1.27 billion), slightly below analysts’ expectations. However, the company met analysts’ forecasts for operating profit (EBIT), which stood at 2.21 billion crowns.

Despite the challenges posed by the pandemic, Pandora remains optimistic about its sales prospects in 2021. It plans to capitalize on its strong online presence and the continued consumer demand for jewellery. The company’s ability to adapt to changing consumer behaviors and its resilience position it for growth in the coming year.

Useful links:
Official Pandora Website
Business of Fashion