Pandora exceeds expectations in Q1, raises sales guidance

Danish jewelry brand Pandora warned on Wednesday of heightened uncertainty over its annual forecasts, despite record-breaking first-quarter sales and slightly increasing its sales guidance.

"We are very pleased with the strong start to the year delivering record revenue for a first quarter," CEO Alexander Lacik said in a statement.

Pandora now expects full-year organic growth of 4% to 6%, compared to a previous forecast of 3% to 6%, but said the forecast was subject to "elevated uncertainty" due to inflationary pressure, coronavirus, and the war in Ukraine.

The group kept its forecast for growth in earnings before interest and tax margin (EBIT) of between 25% to 25.5%, despite seeing inflationary pressure and rising costs for energy, transport, and raw materials such as silver and gold.

"Pandora has historically been successful in mitigating cost increases through efficiency and cost savings initiatives. This work continues," the company said.

The world's largest jewelry manufacturer by production capacity saw no "major impact" from Russia's invasion of Ukraine in the first quarter. Russia, Belarus and Ukraine accounted for only 1% of revenue in 2021.

Pandora reported a 21% increase in sales to 5.7 billion Danish crowns (€766 million), a record high exceeding the average of 5.2 billion Danish crowns expected by analysts surveyed by the company in April.