عربي English Türkçe اردو فارسى
Logo
Latest News
Fashion

Pandora’s 2024 Operating Profit Growth Now Seen at Upper End of Guided Range

Pandora said it now expects full-year organic operating profit growth of between 11% and 12%. (Getty Images for Pandora Jewellery)
Pandora said it now expects full-year organic operating profit growth of between 11% and 12%. (Getty Images for Pandora Jewellery)
TT
TT

Pandora’s 2024 Operating Profit Growth Now Seen at Upper End of Guided Range

Pandora said it now expects full-year organic operating profit growth of between 11% and 12%. (Getty Images for Pandora Jewellery)
Pandora said it now expects full-year organic operating profit growth of between 11% and 12%. (Getty Images for Pandora Jewellery)

Denmark's Pandora , the world's biggest jewellery maker, said on Wednesday it now expects operating profit growth this year at the upper end of its forecasted range while it reported quarterly operating profit a tad below forecasts.

"We are very pleased with our strong results this quarter, particularly in the context of the current macroeconomic backdrop," CEO Alexander Lacik said in a statement.

Operating profit rose to 980 million Danish crowns ($140.87 million) in the third quarter from 920 million a year earlier, slightly below the forecast of 991 million in a company-compiled poll.

Pandora said it now expects full-year organic operating profit growth of between 11% and 12% compared to its previously guided range of 9-12%. The company also raised its outlook in May and August.

It still expects an operating margin this year of around 25%.

Most Viewed

 
 
Fashion

Zalando Sales and Profit Margin Rise on Stronger Demand

Zalando packaging from an online delivery is seen discarded in a cardboard box in Galway, Ireland, August 27, 2020. Picture taken August 27, 2020. (Reuters)
Zalando packaging from an online delivery is seen discarded in a cardboard box in Galway, Ireland, August 27, 2020. Picture taken August 27, 2020. (Reuters)
TT
TT

Zalando Sales and Profit Margin Rise on Stronger Demand

Zalando packaging from an online delivery is seen discarded in a cardboard box in Galway, Ireland, August 27, 2020. Picture taken August 27, 2020. (Reuters)
Zalando packaging from an online delivery is seen discarded in a cardboard box in Galway, Ireland, August 27, 2020. Picture taken August 27, 2020. (Reuters)

German online fashion retailer Zalando on Tuesday reported a higher profit margin for the third quarter thanks to stronger consumer demand, as it focuses on pricier brands to fend off fierce competition in the mass market.

Zalando has also been scaling up its logistics business, through which it sells its platform and network to other retailers and brands, as it pursues new growth drivers.

Quarterly revenue from its online fashion platform rose 4.3% to 2.2 billion euros ($2.4 billion), and revenue from its logistics business, which added British retailer ASOS as a customer, grew 11% on the year to 239.7 million euros.

Zalando's operating profit margin increased by 2.9 percentage points to 3.9%, and the average order value on its platform was 61.1 euros ($66.50) in the third quarter, up from 58.8 euros a year ago.

Bryan Garnier analyst Clement Genelot said Zalando benefited from a rainy September in Europe that helped boost sales of autumn/winter garments across the sector.

"Zalando will have to prove its ability to continue to accelerate growth, beyond temporary weather-related tailwinds, in the coming quarters to please investors," he said.

Zalando confirmed its growth and profit outlook for the year, which it hiked in early October. It expects gross merchandise volume - a key revenue metric for the total value of all goods sold on the platform - to grow between 3% and 5% this year, and revenue to increase between 2% and 4%.

Zalando's shares were up 2.8% in pre-market trading. The stock, up 30% since Jan. 1, has had a bumpy few years, surging during the pandemic when online shopping boomed and falling rapidly after COVID restrictions eased.