In Q1, Pandora's execution of the second phase of its Phoenix strategy commenced on a strong footing. The strategy, aimed at transforming Pandora into a comprehensive jewellery brand, kicked off with the "BE LOVE" marketing campaign, resonating strongly with consumers and driving substantial like-for-like (LFL) growth across Pandora's collections.
Organic growth surged to 18%, bolstered by an impressive 11% LFL growth and a 5% expansion in network size. This translated to a significant revenue increase of DKK 1.0 billion compared to Q1 2023.
Geographically, key European markets experienced robust LFL growth of 9%, while the United States maintained solid performance with a 9% growth rate. Other regions also demonstrated remarkable growth, reaching an 18% increase.
Pandora achieved a new record-high gross margin of 79.4%, marking a substantial increase of 190 basis points compared to Q1 2023.
Furthermore, the company's operating profit (EBIT) witnessed a notable surge, reaching 1.507 billion Danish crowns in Q1 2024, surpassing analysts' expectations.
In response to its stellar performance, Pandora has revised its revenue guidance for fiscal year 2024, raising its organic growth outlook to a range of 8%-10%, compared to the previous forecast of 6%-9%. Despite challenging market dynamics, Pandora remains optimistic about maintaining its operating margin guidance at around 25%.
Reflecting on the results, Pandora President and CEO Alexander Lacik remarked: “We are very pleased with our start to the year, as we embark on the next chapter of Phoenix. Whilst jewellery markets around us generally remain subdued, our ongoing brand investments allow us to take market share. We raise our revenue guidance and look forward to keep fuelling our growth with exciting strategic initiatives over the coming years.”
