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Jewelry Maker Pandora Lifts Outlook as US Sales Continue to Surprise

Jewelry Maker Pandora Lifts Outlook as US Sales Continue to Surprise

Monday, 1 November, 2021 - 08:45
Pandora lifted its sales and profit margin outlook for the year, citing a strong performance in the third quarter. (Getty Images for Pandora/AFP)

Pandora, the world's largest jewelry maker by production capacity, on Monday lifted its sales and profit margin outlook for the year, citing a strong performance in the third quarter.


Pandora has benefited as shops reopened this year after lockdown restrictions and has seen its sales top pre-pandemic levels as US shoppers in particular have splashed out as massive government stimulus and vaccinations against COVID-19 fueled spending on goods and services.


For 2021, the Danish company now expects organic sales growth of 18-20%, up from a previous forecast of 16-18%, and an earnings before interest and tax (EBIT) margin of 24-24.5%, up from a previously forecast 23-24%.


"COVID-19 and the unusually high level of US growth continue to create increased uncertainty around the guidance," it added.


Pandora, best known for its silver charm bracelets, said third-quarter sales came in at 4.73 billion Danish crowns ($734.92 million), beating the 4.67 billion expected by analysts in a poll compiled by the company.


It reported quarterly EBIT of 957 million crowns, which was above the 917 million expected by analysts, and resulted in an EBIT margin of 20.2%.


"Revenue growth and the EBIT margin were lifted by continued strong US performance and a sequential improvement in Europe as COVID-19 restrictions were eased," Pandora said.


The firm will report full third-quarter earnings on Nov. 3.


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