Pandora Increases Advice As Fewer Stores Closed Amid Pandemic
The Danish company said it now expects underlying sales growth of 16-18% this year, up from its previous estimate of more than 12%. He forecast a profit before interest and tax (EBIT) margin of 23% to 24%, compared to more than 22% previously.
“The updated forecast is based on the assumption that 5% of stores will be temporarily closed or severely affected due to COVID-19 in the second half of 2021,” he said in a statement.
Pandora had previously predicted that 5% to 10% of stores would be closed or severely affected by the pandemic. About 6% of its stores are currently temporarily closed or severely affected by the pandemic.
However, the company, known for its bracelets and charms, said it plans to permanently shut down 25 to 50 of its concept stores, compared to previous forecasts for “no major changes across the entire concept store network.” .
Pandora has around 2,700 concept stores worldwide, out of a total of around 6,700 points of sale.
Its shares, up about 15% for the year, were down 3% in afternoon trading.
The company, which is expected to report its detailed financial results on August 17, said underlying sales rose 84% in the second quarter from 2020 levels and 13% from the same period in 2019, before the pandemic.
(Reporting by Nikolaj Skydsgaard, editing by Mark Potter)