PARIS – Pandora said it expects to post organic sales growth in the fourth quarter of around 3-4 percent, signaling improvement in business at the end of the year.
In preliminary results released on Monday, the Copenhagen-based jeweler added that annual organic sales are likely to be down around 11%, beating forecasts of a decline of between 14% and 17%, as reported during the third quarter of the year. last year.
Pandora, which has an extensive network of stores in malls around the world, has been hit hard by coronavirus store closings. About 10% of its stores were temporarily closed in the fourth quarter – the key period for holiday spending – while today the proportion has risen to 25%.
The increase in COVID-19 cases has clouded the outlook for the year, the company said, noting that it creates “high uncertainty” about financial performance for 2021.
The jewelry maker also said it expects a profit before interest and tax margin of around 20%, beating its previous forecast by 17.5-19%. Sales growth in the fourth quarter is expected to be around 1%.
As consumers spend less on travel these days, there has been a shift towards gifts and discretionary goods, Pandora said, noting that this had resulted in a “one-time positive impact” that helped offset the closures of stores.
Pandora focused on new product pillars while collaborations with “Harry Potter”, “Star Wars” and Millie Bobby Brown helped bolster the jeweler’s popularity.
The annual results will be published on February 4.