Strong underlying performance at Pandora

Brand momentum drives strong in 3Q 

Pandora Brand continued progress on the Programme now transformation and the underlying turnaround of the business. Sell-out growth in Q3 of -2% and organic growth was -5%. Online organic growth was 89% and accounted for 21% of revenue in the quarter Q4 started in line with the trends from the second half of Q3, and October sell-out growth was +8% .

With the recent Covid-19 lockdowns, Pandora’s assumptions behind the financial guidance are no longer fulfilled. Due to the uncertainty related to the current and future escalation of Covid-19, it is not considered meaningful to make new assumptions and announce an updated financial guidance. 

At this point in time, Pandora does not change the guidance but the recent lockdowns and potential further Covid-19 escalation represent a clear downside risk. Announced lockdowns so far entail that approximately 18% of the physical stores will be temporarily closed in November. 

The performance in Q3 2020 is a solid indication of the continued brand turnaround with five out of the seven key markets generating positive sell-out growth despite Covid-19. The performance demonstrates that the Programme NOW initiatives are driving traffic and engagement with the brand. 

The new organisational structure, including a global merchandising structure and best-practice sharing, supported a material conversion rate improvement, both online and offline. Digital initiatives and the cost program also progressed well. 

Alexander Lacik, President and CEO of Pandora, says, “Pandora continues to adapt to the challenges posed by the Covid-19 pandemic and our priority remains the safety and well-being of our employees and consumers. Pandora has shown resilience and agility during the pandemic and the double-digit growth in the US and the UK in Q3 signals that we are turning the business around. 

We are now facing a period with new lockdowns, but we are prepared to navigate through the heightened uncertainty, and we have the financial strength to sustain a prolonged period with lockdowns.”