Strong Lab-Grown and Holiday Sales Push Pandora Past Guidance

Pandora’s revenue surpassed expectations in the fourth quarter amid strong holiday sales and a surge in demand for its lab-grown diamond collection.

Sales for the three months ending December 31 rose 9% to DKK 10.8 billion ($1.58 billion) — a 12% increase on an organic basis — the company reported Sunday. Like-for-like revenue increased 9%, boosted by growth in Europe and the US. Sales of the Danish retailer’s Moments collection was up 4% on a like-for-like basis, while Pandora ME climbed 6%. The Timeless line jumped 31%, while Pandora Lab-Grown Diamonds saw an 83% surge in revenue. The company also benefited from a strong holiday season.

“Continued brand momentum drove strong performance across the key trading events of Black Friday and Christmas,” Pandora noted.

Sales in the US were up 15% year on year in the fourth quarter on an organic basis and rose 34% in Germany, outweighing flat revenue in the UK and a 13% decrease in China.

Due to the strong fourth-quarter performance, full-year revenue gained 6%, rising 8% on an organic basis, above the company’s previous forecast of a 5% to 6% increase according to that parameter, it explained. The company’s stock advanced 18% in early trading following the announcement.

“We are very pleased with our results across the peak trading season and how we closed 2023,” said Pandora CEO Alexander Lacik. “It’s clear that our brand resonates well with consumers and continues to gain strength.”

The jeweler will release its full results on February 7.

Main image: Lab-grown diamond jewelry. (Pandora)