With the global jewelry market in retreat, Pandora just delivered a solid second-quarter performance, with organic revenues up 5% to $850 million and like-for-like (LFL) revenues advancing 2%. This brought first-half revenues up 3.5% over the previous year to $1.7 billion.
Having expected challenges in fiscal 2023, Pandora initially guided on a -2% to +3% change in revenues this year, but given its strong performance so far, it raised guidance to between +2% to +5% by year-end.
“We outperformed the market,” CEO Alexander Lacik shared with me after the earnings call. “There’s a lot of uncertainty out there, with the Ukraine war, rising interest rates and consumer sentiment dropping like a stone. It’s a fact that people have less disposable income to go around, so against those macros, we showed sequential improvement.”
And Lacik is counting on that sequential improvement to pick up pace through the rest of the year after it drops three new collections of lab-grown diamond jewelry into the U.S., Canada, Australia and U.K. markets, with Mexico and Brazil to follow in time for holiday.
The new range includes rings, earrings, bracelets and necklaces and for the first time, it is presenting lab-grown diamonds in its flagship charms, what the company calls the “universe that is at the heart of Pandora.”
“We have over 600 million customers coming to our stores and website every year and we know the vast majority of them are very interested in buying a diamond but can’t afford mined diamonds. That’s where Pandora