The second phase of Pandora’s Phoenix strategy is off to a strong start. Increased investments are elevating brand desirability and showcasing Pandora’s position as a full jewellery brand.

Continued momentum, helped by the early restaging of the brand, drives strong Q1 2024 trading; organic growth ends at 18% with Like-for-like (LFL) growth of 11% and network expansion of 5%.

In absolute terms, revenue increased by DKK 1.0 billion compared to Q1 2023.
LFL growth in key European markets of 9%, US remaining solid at 9% and Rest of Pandora at 18%.

The gross margin reached a new record-high of 79.4%, +190bp vs Q1 2023, supported by channel mix, pricing and efficiencies, as well as some tailwind from silver prices and foreign exchange rates.

The Q1 2024 EBIT margin landed at 22.0%, +50bp ahead of last year, reflecting the strong growth which more than offset the planned step-up in marketing investments as part of the restaging of the brand.

Leverage remains low at a NIBD/EBITDA of 1.3x. Early February, Pandora initiated a new DKK 4.0 billion share buyback programme, and in Q1 2024 EPS increased 18% compared to last year.
Phoenix strategy highlights

Pandora’s brand strategy, which centres on transforming the perception of Pandora into a full jewellery brand, was ignited in Q1 through the launch of the new multi-season “BE LOVE” marketing campaign.

The strategy is resonating with consumers and drove LFL growth across Pandora’s collections. The Core segment delivered 3% LFL growth whilst Fuel with more delivered 34% LFL growth.

Within the Fuel with more segment, Timeless continued its momentum with 43% growth, while Pandora Lab-Grown Diamonds also saw progress with 87% growth.

The organic growth guidance is upgraded to “8-10%” (previously “6-9%”). The EBIT margin guidance remains unchanged at “around 25%”.