PARIS — Pandora said it expects to post organic sales growth over the fourth quarter, in the range of 3 to 4 percent, signaling improved business at the end of the year.
In a preliminary results released Monday, the Copenhagen-based jeweler added that annual organic sales will likely be down around 11 percent, exceeding the guidance for a decline of between 14 and 17 percent, as indicated during the third quarter of last year.
Pandora, which has a sprawling store network in shopping malls around the world, has been hit hard by coronavirus store closures. Around 10 percent of its stores were temporarily shut over the fourth quarter — the key holiday spending period — while today the proportion has swelled to 25 percent.
Rising cases of COVID-19 have clouded the outlook for the year, the company said, noting it creates “elevated uncertainty” about the financial performance for 2021.
The jewelry maker also said it expects a margin on earnings before interest and taxes of around 20 percent, outpacing its previous guidance for 17.5 to 19 percent. Sell-out growth over the fourth quarter is expected to be around 1 percent.
As consumers spend less on travel these days, there has a been a shift toward splashing out on gifts and discretionary goods, Pandora said, noting this resulted in a “nonrecurring positive impact” that helped offset store closures.
Pandora has been focusing on new product pillars while collaborations with “Harry Potter,” “Star Wars” and Millie Bobby Brown have helped bolster the jeweler’s popularity.
Full year results will be released on Feb 4.
Source: Read Full Article