In This Article:
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Like-for-Like Growth: 7% for the full year, 6% in Q4.
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Gross Margin: Approximately 80% for the year.
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EBIT Margin: Just over 25%, in line with guidance.
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EPS Growth: 17% for the year.
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Revenue Growth from Network Expansion: 5% contribution in Q4.
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Core Segment Growth: 2% like-for-like growth in 2023 and 2024.
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Fuel with More Segment Growth: 22% like-for-like growth in 2024.
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US Market Growth: 9% like-for-like growth in Q4.
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European Market Performance: 0% like-for-like growth in key markets, 4% in broader Europe.
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China Market Performance: -10% like-for-like growth.
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Store Network Expansion: 75 to 100 total openings targeted for 2025.
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Free Cash Flow Generation: Significant, with a new 4 billion Krona share buyback program.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Pandora AS (PNDZF) achieved a 7% like-for-like growth for the full year and 6% in Q4, demonstrating the robustness of their Phoenix strategy.
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The company maintained a strong gross margin of around 80%, indicating a solid business model.
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Pandora AS (PNDZF) reported a 17% EPS growth for the year, showcasing strong earnings performance.
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The company achieved significant milestones in sustainability, crafting all jewelry with 100% recycled silver and gold, and operating entirely on renewable electricity.
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Pandora AS (PNDZF) plans to continue investing in brand development and expects organic growth of 7-8% in 2025 despite challenging market conditions.
Negative Points
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Pandora AS (PNDZF) faces significant external cost headwinds from commodity prices, impacting their EBIT margin guidance.
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The company observed intense promotional behavior from competitors, which could pressure their pricing strategy.
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Performance in key European markets like France and Italy was challenging, with like-for-like sales declining.
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The Chinese market remains difficult, with a 10% decline in like-for-like growth and plans to close underperforming stores.
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Pandora AS (PNDZF) anticipates a challenging macroeconomic environment in 2025, which could impact consumer spending and growth.
Q & A Highlights
Q: Could you elaborate on the promotional environment and your comfort with implementing price increases in such a competitive backdrop, especially in European markets like France, Italy, and the UK? A: We've observed a hotter promotional environment across all countries, with more days of promotion and deeper discounting. Despite this, our pricing actions remain unchanged. We introduced a 5% price increase in early October and feel confident about the elasticity being around minus one. In European markets, the context varies. In France, a different media model post-Mother's Day was a mistake, impacting Q4 momentum. In Italy, we've lost some momentum on the core, and in the UK, despite a minus three performance, we believe we're still gaining market share.