Jewellery retailer Pandora raises growth targets

Pandora, which aims to open up to 275 new stores by 2026, said it would start expanding into South Korea, Japan and India

Thu, 05 Oct, 2023 - 12:12

Helen Reid

Jewellery retailer Pandora raised its growth targets on Thursday, saying investments in the brand and store network were paying off, but it sounded a note of caution on China.

The company, which gave its updated outlook ahead of a capital markets day in London on Thursday, also said it would expand into other Asia countries including India.

Pandora, which calls itself an "affordable luxury" brand selling jewellery from silver charm bracelets to lab-grown diamonds, now targets a compound annual growth rate of 7-9% for the 2023-2026 period and an EBIT margin of 26-27% by 2026.

It now aims for a like-for-like compound annual growth rate of 4-6%, up from 3-5%, and a higher contribution from the expansion of its store network of around 3%, up from 1-2%.

Pandora's Copenhagen-listed shares are up around 45% this year as investors bet on the success of its "Phoenix" strategy launched in 2021 which has seen it increase marketing spend and open more stores.

"We have fundamentally changed how we work, and the organisation is much stronger," Pandora's CEO Alexander Lacik said in a statement.

In China, Pandora said it still sees long-term growth potential but "building a sizeable business there will be a longer journey than originally anticipated". In 2021 Pandora said it aimed to triple revenue in China from the 2019 levels.

A property slump, weak consumer spending and high debt levels are weighing on China's economy, hurting many Western brands and retailers with a big exposure to China.

Pandora, which aims to open between 225 and 275 new concept stores in 2024-2026, said it would start expanding into countries like South Korea, Japan and India.

Globally the company targets revenue of 34bn-36bn Danish krone (€4.56bn-€4.8bn) in 2026, up from around 27bn krone expected for 2023.

Reuters.