Pandora Posts 6% Sales Increase by June, Defies European Market Slump

Pandora approves the first half of the year, but falls in Europe. The Danish jewelry company ended the first half of the year with an increase in both sales and profits during the period. Although the company has managed to grow in the first six months, business in Europe is declining.

Specifically, the company ended the first half with sales of 14,421 million Danish kronor ($2,260 million), 6% higher than in the same period last year. Gross operating profit (ebitda), meanwhile, stood at 4,175 million kronor ($654 million), although it has reduced the margin to 20.3%, compared to 20.9% a year ago.

Pandora also raised its earnings through June, up almost 8%, to a profit of 1.904 billion kronor ($298.4 million). The good results have led the jewelry company to maintain its growth forecasts for the rest of the year, in which it expects to increase its sales between 7% and 8%.

Pandora has reduced sales in almost all European markets

Despite having reached June with good results, its main markets, all located in Europe, have suffered during the period, which has led to a loss of value of its shares in the stock market. Specifically, Pandora posted a 9% drop in sales in Italy, to 1,037 million crowns ($162.5 million); 4% in France, with sales of 511 million crowns ($80.1 million), and 3% in the United Kingdom, where the company had a turnover of 1,523 million crowns ($238.7 million).

In China, however, is where Pandora’s turnover has suffered more, by 15%, to record sales of just 191 million crowns ($29.9 million), while the United States has gone up to 12%, which translates into about 4,742 million crowns ($743 million).

“In these turbulent times, we are pleased with another quarter of single-digit organic growth and solid profitability,“ celebrated Pandora CEO Alexander Lacik. The executive also added that the company remains confident of achieving its growth targets “despite macroeconomic challenges.“