Pandora achieves LFL sales growth of 11 percent

In the first quarter, Pandora delivered organic growth of 18 percent which consisted of LFL growth of 11 percent and network expansion of 5 percent.

The company’s organic growth guidance is upgraded to 8 to 10 percent against prior outlook of 6 to 9 percent, while the EBIT margin guidance remains unchanged at around 25 percent.

Commenting on the first quarter results, Alexander Lacik, president and CEO of Pandora, said: “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 keeping our growth with exciting strategic initiatives over the coming years.”

Regionally, the company said, European key markets continued to deliver LFL growth of 9 percent driven by particularly strong performance in Germany with 67 percent LFL growth, whilst other markets remained broadly stable. In the US, the company saw 9 percent LFL growth. Rest of Pandora posted a double-digit LFL increase of 18 percent.

The company’s online channel delivered 21 percent LFL, while Pandora’s physical network delivered 10 percent LFL and partners 3 percent.

Gross margin was 79.4 percent, up 190bp.

The company opened 151 concept stores and 116 Pandora-owned shop-in-shops during the last 12 months. During the first quarter, Pandora opened 19 new concept stores and seven Pandora owned shop-in-shops.