Pandora Gets Revenue Boost from Lab-Grown Expansion

Pandora raised its guidance for the full year following stronger-than-expected sales in its first quarter, driven by high demand for its lab-grown diamond collections. 

The Danish jeweler now expects revenue for 2024 to grow by 8% to 10%, compared to the 6% to 9% it previously stated, it said last week. Revenue for the first three months climbed 17% year on year in the first quarter to DKK 6.83 billion ($986.3 million), rising 18% on an organic basis — a similar metric to comparable-store sales.  

The increase is the result of a gain of 87% on a like-for-like basis in the company’s synthetic-diamond collection, totaling DKK 63 million ($9.1 million). Pandora now sells its lab-grown diamond jewelry in 700 stores in the US, Canada, the UK, Australia, Mexico and Brazil, with North America accounting for the largest proportion of revenue. Additionally, the collection is creating a “halo effect” on the company’s other jewelry groupings, it noted. 

Pandora also received a boost from the expansion of its network, it explained. During the period, it added a net 19 new concept stores and seven Pandora-owned shop-in-shop locations. The jeweler’s focus on its Phoenix strategy to elevate the brand has also been effective. 

Online sales rose 22% versus the same period a year ago — 24% on an organic basis — comprising 20% of total revenue. Meanwhile, profit rose 9% to DKK 965 million ($139.3 million). 

Sales in China were “challenging,” the company said, falling 17% on a like-for-like basis. However, Pandora is focused on enhancing the brand, noting that the mainland is a “strategic priority.” Strong sales in the US and Europe, particularly in Germany, offset the drop in China. 

“We are very pleased with our start to the year, as we embark on the next chapter of Phoenix,” said Pandora CEO Alexander Lacik. “Whilst jewelry markets around us generally remain subdued, our ongoing brand investments allow us to take market share. We raise our revenue guidance and look forward to keep fueling our growth with exciting strategic initiatives.” 

Image: Lab-grown diamond jewelry (Pandora)