Pandora, the Danish jewelry retailer, has raised its sales forecast for 2024 following strong growth in its lab-grown diamonds and increased customer traffic driven by its ongoing transformation strategy.
The company now expects organic sales growth of 9% to 12% for the year, up from its previous forecast of 8% to 10%. The updated outlook was announced on Tuesday after Pandora reported a 15% year-on-year increase in sales for the second quarter, ending June 30. The company’s sales reached DKK 6.77 billion ($990.9 million) during this period. Organic growth accounts for sales in local currencies and adjusts for changes in the company’s structure, such as the addition or removal of distributors and franchisees. Pandora’s profit for the quarter grew by 2.7% to DKK 799 million ($117 million).
Pandora’s Lab-Grown Diamonds collection saw a significant like-for-like growth of 88% during the quarter. The company highlighted that this collection had a “halo” effect, boosting interest in its other fashion jewelry offerings. As part of its marketing efforts, Pandora created a custom jewelry collection featuring nearly 200 carats of white and pink synthetic diamonds for brand ambassador and actress Pamela Anderson, which she wore to the Met Gala in May.
“Pandora’s Lab-Grown Diamonds have positively impacted the entire Pandora brand, increasing consideration for purchasing any piece of Pandora jewelry since our expanded presence in the lab-grown diamond category,” the company stated.
The company’s newest collection, Pandora Essence, which includes cultured pearls, also performed well, generating DKK 172 million ($25.2 million) during the quarter. Pandora’s transformation strategy, aimed at elevating the brand and reshaping consumer perception of Pandora as a full-fledged jewelry brand, has been a key factor in its recent success.
“Our strategy continues to elevate Pandora despite sluggish consumer spending,” said Pandora CEO Alexander Lacik. “We have successfully begun our journey to establish Pandora as a complete jewelry brand, and our results show that consumers appreciate what we are offering.”
Sales have remained strong into the third quarter, with like-for-like growth in the mid-single digits, driven by increased customer traffic and the rising popularity of new collections, the company added.
