Pandora has reported record full-year revenue and strong profit growth in 2021.
Shares in Pandora jumped to recover some of its losses this year after the Danish jewellery retailer said it expected sales to improve and announced a lift to its 2023 revenue target on the back of record sales in 2021.
The giant posted Q4 revenue of around £1 billion, representing organic growth of 10% compared to a year ago, and 15% compared to two years ago.
The world’s largest jewellery maker by production capacity said it expected organic revenue to grown by between 3% and 6% in 2022, in line with an average of 5% expected by analysts. It expects its EBIT margin to be between 25% and 25.5%.
The company’s key US market remained strong during the quarter, with sell-out growth of 39% in the fourth quarter compared to the same period in 2019.
Performance in China, however, was “unsatisfactory” with sell-out growth 39% below Q4 2019 levels as the pandemic took its toll on business. Pandora added that it “continue to see significant opportunities to grow in China”.
Looking at current trading, Pandora said it “remains solid” and confirmed its “back on the growth track”.
Its organic growth was 23% in January 2022 compared to January 2021 when the business was impacted by Covid-19 lockdowns.
Alexander Lacik, President and CEO of Pandora, said: “We end 2021 on a high note with record-breaking revenue and sell-out in Q4, and I am pleased that we are able to increase our 2023 revenue target by around DKK 2 billion. I am particularly pleased that our strong growth was broad-based across key markets,”
“Our investments in digital are clearly paying off, Moments is showing solid growth, and we are encouraged by the new product platforms Pandora ME and Brilliance. With this – and with network expansion accelerating in 2022 – I am confident that we have all the ingredients to deliver sustainable and profitable revenue growth in the years to come.”