Strong Holiday Sales Boost Pandora’s Sales And Profits

(IDEX Online News) – Charm bracelet maker and retailer, Pandora, has increased its sales and profit forecasts for the second time in less than three months as its jewelry proved popular during the Christmas shopping season.

Revenue for 2013 would be around about 9 billion Danish kroner ($1.6 billion), the company said, after raising its forecast in October to 8.6 billion kroner from 8 billion kroner.

Pandora's preliminary revenue forecasts for the fourth quarter indicated that sales soared about 30 percent on the year to $510 million (2.8 billion kroner).

“Following a strong finish to the year, with better-than-expected Christmas sales, we will end 2013 with around 35 percent revenue growth and a substantial increase in profitability compared to 2012,” CEO Allan Leighton said in a statement.

The firm said that revenue “exceeded the previous financial guidance primarily due to better holiday sales in the fourth quarter as well as more than expected Concept store openings towards the end of the year. In 2013, Pandora opened a net total of 205 Concept stores versus previously expected 195 openings. Revenue in the fourth quarter increased on all geographies despite headwind from foreign exchange rates, with all regions contributing with strong growth.

“The EBITDA-margin was higher than expected primarily due to the better than expected revenue in the fourth quarter.

“Like-for-like sales-out in Pandora’s Concept stores in Q4 2013 continued to be good with US salesout up 5.1 percent, UK up 17.9 percent, Germany up 5.7 percent and Australia up 25.5 percent compared to Q4 2012.”

Pandora said its annual report for 2013 will be released on February 18, when senior management will elaborate further on the results.