Pandora reported an 11% year-over-year organic growth for the third quarter of 2024, raising revenue to 6.1 billion Danish kroner (DKK). This growth includes a 7% increase in like-for-like (LFL) sales, 5% from network expansion, and a -1% impact due to adjustments in inventory management with retail partners.
Year-to-date revenue for the first nine months reached DKK 19.71 billion, marking a 15% organic growth compared to the previous year.
Growth Driven by “Phoenix” Strategy and New Collections
Pandora’s investments under its Phoenix strategy focus on brand development, design, markets, and personalisation. This quarter saw a 2% LFL growth in Pandora’s “Core” segment, which includes its flagship “Moments” collection, while the “Fuel with more” segment, including lab-grown diamonds and other new designs, grew by 21%.
The “Pandora ESSENCE” collection, launched mid-2024, contributed DKK 169 million in Q3, showing positive consumer interest in its new designs. Personalisation efforts also proved effective, with a significant uptake in Pandora’s engraving services, which grew over 100% in Q3 and now feature around 1,250 engraving machines worldwide.
In addition, lab-grown diamond jewelry sales reached DKK 64 million in Q3, representing a 34% increase in LFL growth, though these sales still form less than 1% of Pandora’s overall revenue. The company introduced a “Microfine Diamonds” range featuring small lab-grown diamonds, appealing to consumers seeking affordable diamond options.
Expansion and Revised Guidance for 2024
Pandora’s expansion strategy saw a net addition of 39 concept stores and 10 Pandora-owned shop-in-shops in Q3, bringing its total points of sale to 6,658. The company now expects to open 125 to 150 concept stores by the end of the fiscal year, slightly adjusting its original plan of 100 to 150.
Based on its year-to-date performance, Pandora raised its 2024 organic growth guidance to 11-12%, up from the previous 9-12% range. The EBIT margin target remains around 25%, taking into account rising input costs.
CEO Commentary on Strategic Progress
Alexander Lacik, President and CEO of Pandora, commented on the company’s performance: “We are very pleased with our strong results this quarter, particularly in the context of the current macroeconomic backdrop. We are transforming the perception of Pandora into a full jewelry brand and unlocking the next chapter of our growth by attracting more consumers to our brand. Step by step we are capturing the many untapped opportunities, and we will continue to invest in our strategic growth initiatives.”
