Jewellery manufacturer Pandora has exceeded expectations, reporting a smaller decline in third-quarter profit than anticipated. The company saw an increase in footfall in its stores, leading to organic sales growth of 11% – surpassing the projected 6%. As a result of this strong performance, Pandora has raised its full-year sales outlook. The Danish company now expects organic sales growth of 5%-6% for the year, up from its previous estimate of 2%-5%. Additionally, Pandora maintains its operating profit margin target of around 25%.

Pandora, well-known for its bracelets and charms, sells its jewellery in over 100 countries through various retail locations, including 2,500 concept stores and a total of 6,500 points of sale. Shares in the company rose by 5% to 847 crowns following the positive news. Despite increased costs leading to a decline in operating profit from 978 million crowns to 920 million crowns, Pandora still exceeded analysts’ expectations.

The rise in like-for-like sales can be attributed to the U.S., where recent initiatives by the brand have generated increased traffic in the region. Analysts at JPMorgan have noted that this growth is particularly impressive given the overall volatile retail environment. CEO Alexander Lacik has stated that the company’s investments in the brand have successfully attracted more consumers into their stores.

Pandora’s gross margin reached a record high of 79% due to cost savings and price increases. However, the operating margin decreased as a result of higher commodity prices and foreign exchange rates. The company predicts a positive net impact from these factors in the fourth quarter.

During the third quarter, Pandora experienced an unexpected surge in demand driven by tourists and collections in various markets. The company does caution that this pattern may not repeat itself in the corresponding quarter next year. Despite this uncertainty, Pandora remains optimistic about its future performance.

Useful links:
1. Pandora Official Website: Visit the official website of Pandora to explore their range of jewellery products.
2. JPMorgan Official Website: Learn more about JPMorgan and their analysis of Pandora’s impressive growth.