Pandora Assumes General US Jewelery Market Will Decline 10% -20% in 2022

By Dominic Chopping

Danish jeweler Pandora AS on Wednesday proposed a new 3.3 billion Danish kroner ($ 506.2 million) share buyback and said its current performance remains solid, with sustainable and profitable growth expected to continue.

“We end 2021 on a high note with record-breaking revenue and sell-out in 4Q,” Chief Executive Alexander Lacik said.

“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,” Mr. Lacik said.

The company last month prereleased fourth-quarter figures but said Wednesday that organic growth was 23% in January.

Pandora targets organic growth of 3% -6% and an earnings before interest and tax margin of 25.0% -25.5% in 2022. This includes expected headwinds following the unusually high growth in the US in 2021 and expected hit from Covid-19, especially in the first quarter of 2022, it said.

The company reconfirmed its 2023 targets of 5% -7% organic growth and an EBIT margin of 25% -27%.

Pandora said the much-stronger 2021 performance has increased the baseline for organic growth and as a consequence its absolute revenue target in 2023 has increased to DKK27.0 billion-DKK28.1 billion from DKK24.8 billion-DKK26.2 billion.

The company proposed a dividend of DKK16.

Write to Dominic Chopping at dominic.chopping@wsj.com

Leave a Comment