Danish jewelry maker Pandora reported second-quarter sales in line with expectations and reaffirmed its annual forecast, despite disappointing sales in the United States and China.
Organic growth in the US market was down 12% in the quarter compared to the previous year, when sales in its biggest market were boosted by coronavirus-related economic stimulus packages.
"We maintained solid growth compared with pre-pandemic levels, despite negative impacts by lockdowns in China and a tough US comparison due to the stimulus cheques last year," Chief Executive Alexander Lacik said in a statement.
The world's largest jewelry maker by production capacity said traffic into its 219 stores in China fell 60% in the second quarter compared to a year earlier due to "the entire network either being closed or severely impacted" by coronavirus-related shutdowns.
The company expects China to pull down its financial performance for the rest of the year.
Pandora said sales in the second quarter grew 10% to 5.66 billion Danish crowns ($773.33 million), compared to an average of 5.61 billion crowns expected by analysts in a poll conducted by the company.
Pandora still expects full-year organic growth between 4% and 6%. It also reaffirmed annual outlook for operating profit margin at 25.0%-25.5%.