COPENHAGEN: Pandora, the world's largest jewellery maker, raised its full-year guidance on Thursday after sales and profit for its first quarter beat expectations due to renewed interest in the brand known for its charm bracelets.
Pandora has invested heavily in marketing and broadened its range of rings, necklaces, and lab-grown diamonds, though charms still made up around 60-70% of sales.
Sales jumped 11% in the first quarter to 6.8 billion Danish crowns ($977.77 million), led by a 9% increase in the United States, its biggest market, where the brand is gaining market share even as overall demand for jewellery has weakened.
"Even when there is a shrinking pie, you will find winners and losers," CEO Alexander Lacik told Reuters in an interview. "The reason we are gaining share fundamentally is because we keep investing in this brand."
Operating profit rose to 1.51 billion Danish crowns ($215.55 million) from 1.26 billion a year earlier, compared with 1.32 billion expected by analysts polled by the company.
Pandora now expects organic revenue growth of 8% to 10% this year, compared to 6%-9% growth previously. It kept its operating margin outlook unchanged at around 25%.
Lacik said social media trends contributed towards Pandora's growth but were not the underlying driver.
Charm bracelets, a staple of 90s fashion, have enjoyed a renaissance, popularized by social media platforms such as TikTok. - Reuters
