Pandora Raises Full-Year Forecast as Synthetics Sales Strengthen  

Pandora has increased its sales outlook for the current year following strong growth in its synthetics offerings and increased traffic brought on by its transformation strategy. 

Sales will climb by 9% to 12% on an organic basis for 2024, the Danish jewelry retailer predicted Tuesday. Its previous sales forecast for the year ranged from an increase of 8% to 10%.  

The update came on the back of a 15% year-on-year sales rise on both an organic and reported basis to DKK 6.77 billion ($990.9 million) in the second quarter that ended June 30. Organic growth reflects sales in local currencies after adjusting for changes to the company’s structure, such as the addition or removal of distributors and franchisees. Profit grew 2.7% to DKK 799 million ($117 million). 

During the quarter, the jeweler saw like-for-like growth of 88% for its Pandora Lab-Grown Diamonds collection, which it noted created a “halo” effect for all other fashion jewelry the company offers. The brand continued to push its marketing of synthetics in the three-month period, creating a bespoke collection of jewelry comprising nearly 200 carats of white and pink synthetic diamonds for brand ambassador and actress Pamela Anderson to wear to the Met Gala in May. 

“Pandora’s Lab-Grown Diamonds have had a positive halo effect on the Pandora brand and thereby the other collections, with consideration to purchase any piece of Pandora jewelry having increased since Pandora’s expanded presence in the lab-grown diamond category,” the company noted. 

The jeweler’s newest collection, Pandora Essence, which includes cultured pearls, proved popular, bringing in DKK 172 million ($25.2 million) during the period. The company also benefited from its transformation strategy, which focuses on elevating the brand to increase desirability and transform consumer perception of Pandora into a full jewelry brand, it said. 

“Our strategy continues to take Pandora to new heights despite general consumer spending being somewhat sluggish,” said Pandora CEO Alexander Lacik. “We have successfully started the journey to make Pandora known as a full jewelry brand, and our results show that consumers like what they see.” 

Sales have remained strong during the start of the third quarter, with like-for-like growth at mid-single-digit levels. This reflects a pickup in traffic across its network, as well as the increasing popularity of new brands, it added. 

Image: A display of Pandora jewelry. (Shutterstock)