Pandora raises 2021 growth forecast
Danish jeweller Pandora expects stronger growth in 2021 based on the company’s improved performance in the second quarter of the year.
Organic growth is seen to increase by 16 per cent to 18 per cent from a previous forecast of 12 per cent while earnings before interest and taxes could improve by 23 per cent to 24 per cent from 22 per cent, according to the company.
The jeweller updated its financial guidance on the assumption that 5 per cent of its stores will suspend operations due to the pandemic during the second half of 2021.
“Today, around 6 per cent of the stores are temporarily closed or severely impacted due to Covid-19. The updated guidance also assumes that Covid-19 will have no major negative impact on production and supply chain. Covid-19 is still expected to impact organic growth negatively by around -6 per cent for the full year,” noted Pandora.
Pandora saw strong momentum in Q2 2021, recording a 13 per cent and 84 per cent organic growth from 2019 and 2020, respectively. On average, around 15 per cent of the stores were temporarily closed or severely impacted during Q2. Continued recovery in the US and gradual improvements in Europe alongside easing of Covid restrictions lifted revenues, the company said.