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October 17, 2020
Danish fashion jewellery brand Pandora announced the key financial data for the third quarter (as of the end of September) and updated its full-year performance forecast for the 2020 fiscal year.
The company pointed out that despite the unstable and unpredictable macroeconomic environment caused by the epidemic, it currently hopes that the full fiscal year's organic sales and profit before interest, tax, depreciation and amortization can be higher than previously expected. "In the third quarter of fiscal year 2020, the Pandora brand will grow further in most important markets, and the future development momentum will be strong."
The brand pointed out that in the market where physical stores are reopening, the extremely high conversion rate of purchases and the continued strong online sales have largely offset the decline in sales caused by reduced store traffic.
Overall, 90% of Pandora brand's physical stores have resumed operations in the third quarter, and it is expected that as of the fourth quarter, at most 95% of physical stores will resume operations. Up to now, Pandora has more than 7,400 sales outlets in more than 100 countries around the world, including more than 2,700 concept stores.
The brand stated that it will continue to invest in potential brand development opportunities while preparing for the peak trading hours in the fourth quarter. "However, measures such as temporary store closures caused by the epidemic, social distancing, and shortening of business hours in some stores will continue to affect the performance of the brand."
Pandora predicts that the full fiscal year's sales will drop organically by 17-14%, which is better than the previously expected decline of 20-14%; the pre-interest and tax profit margin is between 17.5-19%, higher than the previously expected 16-19% .
Pandora's key financial data for the third quarter are as follows:
Sales fell 2% year-on-year and organically fell 5%
Online sales increased organically by 89% year-on-year
Earnings before interest, taxes, depreciation and amortization (EBIT) ratio of 17%, higher than expected, mainly due to sales growth
The brand will announce the complete third-quarter financial report on November 3.