Pandora shares rise following successful ad campaigns during Christmas

The targeted marketing and campaigns with celebrities such as Pamela Anderson had helped the jewellery maker gain market share in the final months of last year despite a flat overall market

The company, known for its bracelets and charms, said on Sunday organic sales grew by 12% year-on-year between October and December.

Danish jewellery maker Pandora shares jumped more than 2% after the retailer benefitted from heavy spend on advertising during Christmas.

The targeted marketing and campaigns with celebrities such as Pamela Anderson had helped it gain market share in the final months of last year despite a flat overall market.

The company, known for its bracelets and charms, said on Sunday organic sales grew by 12% year-on-year between October and December, lifting annual growth to 8% and exceeding the company's own full-year forecast of 5%-6% made in early November.

"I'm tempted to say that all of the organic growth is driven by Pandora, because if we look at the few pieces of data that are available, the general jewellery market was down around the world," chief financial officer Anders Boyer said in an interview.

By sponsoring fashion shows, focusing on getting stories into fashion magazines, and working with celebrities and influencers, Pandora has managed to attract more people to its more than 2,500 stores worldwide, especially in the United States, its biggest market.

"Pandora has for many years been the most well-known jewellery brand in the world and that hasn't changed. But what has changed is that around a year back we started adding more and more focus on and investment behind driving brand desirability," said Mr Boyer.

The "affordable luxury" brand has had success hiring former Baywatch star Pamela Anderson to promote its lab-made diamonds collection, he said.

The company's full-year operating profit margin stood at 25%, in line with its November guidance, after hitting 34% in the fourth quarter.

• Reuters