The company recently opened its first flagship store in Copenhagen, and also launched its first lab-grown diamonds in Denmark.
ADVERTISEMENTThe world's largest jewellery manufacturer, Pandora, has recently upped its full-year organic growth guidance, driven primarily by its move to widen its product range.
The company reported its second quarter 2024 earnings on Monday, seeing a revenue of DKK 6,771m (€907.40m) during this period, up from DKK 5,894m (€789.78m).
Six percent of this revenue growth was because of network expansion. This, along with the greater product choice, also led to higher store traffic, which in turn contributed to the strong revenue.
Operating profit came up to DKK 1,338m (€179.30m) for the second quarter 2024, up from DKK 1,188m (€159.19m) in Q2 2023.
For the first half of the year, revenue was DKK 13,605m (€1,823.11m) up from DKK 11,745m (€1,573.85m) in the corresponding period last year.
Pandora now expects full-year organic growth to be somewhere between 9% and 12% for 2024, as compared with its earlier guidance in May of 8% to 10%. The operating margin is estimated to come in at approximately 25%.
The company has also recently been expanding into new design asthetics, under its Phoenix strategy, which combines brand, design, personalisation and core markets. It also launched its Pandora Essence collection worldwide, which is inspired by free-flowing forms of nature.
Alexander Lacik, president and chief executive officer (CEO) of Pandora said in the company’s Q2 2024’s earnings report: "Our strategy continues to take Pandora to new heights despite general consumer spending being somewhat sluggish.
"We have successfully started the journey to make Pandora known as a full jewellery brand, and our results show that consumers like what they see. Thanks to our strong performance, we are again raising revenue guidance for 2024 and look to the second half of the year with optimism."
Pandora launches lab-grown diamonds in Denmark
Pandora recently launched its own lab-grown diamonds in Denmark, having previously launched them in Australia, the UK and the Americas. The move is expected to make diamond jewellery more accessible to a wider range of people, as well as lower the price barriers that come with real diamonds.
Denmark is currently the first country to sell Pandora's lab-grown diamonds. The company uses 100% green energy to make its diamonds, while also using recycled gold and silver for the bands and settings.
Lab-grown diamonds have recently boomed in popularity due to their affordability, as well as the human rights concerns that have emerged in some of the biggest diamond-producing countries such as the Democratic Republic of Congo (DRC). The carbon footprint of producing real diamonds has also been a significant factor contributing to increase in demand for lab diamonds.
Lacik said in a press release: "Our lab-grown diamonds represent the future of luxury. They combine beauty and responsibility, and we are incredibly excited to bring them to Denmark. As a Danish company, it is particularly meaningful for us to introduce this innovation to our home market."
Pandora opened its first flagship store in Copenhagen in June this year, which is the largest Pandora store so far, spread over 500 square metres and two floors.
