Pandora expects to post organic growth in Q4

Jewellery retailer Pandora has released preliminary and unaudited results for 2020, ahead of its Q4 2020 Interim Report to be released on February 4.

In the statement, it said the move was to comply with the disclosure rules for companies listed on Nasdaq OMX Copenhagen, and that based on unaudited numbers, organic growth for Q4 2020 is expected to be around 3-4 percent. However, adding that annual organic sales will likely be down around 11 percent.

The Copenhagen-based jewellery stated that this exceeds both the guidance range of a decline of between 14 to 17 percent, as indicated in the Q3 2020 Interim Report, as well as the expected improvement of “at least 1 percentage point above the high end of the guidance” reported on December 30, 2020.

The EBIT margin is expected at around 20 percent, compared to the 17.5 - 19 percent guidance range in late-December.

Pandora also added that around 10 percent of its physical stores were temporarily closed during Q4 2020 due to Covid-19. Currently, around 25 percent of its stores are temporarily closed.

The jewellery also reiterated that Covid-19 store restrictions continue to have a “negative impact on performance”, while added that this has been offset by consumers shifting away from travelling and services to jewellery.

Image: courtesy of Pandora