Despite headwinds in China, Pandora said its collaboration with Marvel and Padlock jewelry helped power a 21 percent rise in first-quarter revenues to 5.69 billion Danish kronor, or 764.7 million euros. That amounts to an 18 percent improvement over the same period in 2019.
The Danish jewelry giant said consumer demand “generally remained healthy during April” despite inflation and rising interest rates.
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It also flagged negative impacts from the war in Ukraine, cost inflation, and COVID-19, but nevertheless slightly lifted guidance for organic revenue growth, now expected to be 4 to 6 percent, versus 3 to 6 percent. The company maintained EBIT margin guidance at 25 to 25.5 percent and warned that “financial guidance for 2022 is subject to elevated uncertainty.”
Pandora will face a tougher comparison base in Q2, due to fewer pandemic lockdowns and stimulus packages in the U.S. in the year-ago quarter.
“We are very pleased with the strong start to the year,” Alexander Lacik, president and CEO of Pandora, said in a statement. “All our product platforms support the growth in Q1, as our ability to continuously offer new innovation pays off.
“For the last two years, we have invested in building a stronger organization, and this is increasingly visible in the numbers and how we drive the company forward,” he added.
Pandora cited double-digit organic growth across Europe versus 2019. Revenues gained 7 percent in the U.S., representing a 62 percent improvement over Q1 in 2019. The company acquired 32 franchise stores, most on the West Coast, and entered into a new partnership with Macy’s in the period.
Sales in the online channel slipped 17 percent in the quarter, reflecting widespread pandemic lockdowns in Q1 of 2021 that fanned e-commerce. The gain stood at 155 percent compared to 2019.
Pandora noted that all its business with Russia and Belarus has been suspended and that “these markets account for approximately 1 percent of revenue.”
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