Recently, Danish fashion jewelry brand Pandora released its key financial data for the third quarter ending September and updated its full-year performance expectations. Sales declined by 2% year-over-year, with an organic decline of 5%, while online sales saw an organic year-over-year increase of 89%. The EBIT margin reached 17%, higher than expected, mainly benefiting from sales growth. The complete financial report will be published on November 3.
Due to the unstable and unpredictable macroeconomic environment caused by the pandemic this year, the brand still hopes that full-year profits will exceed previous expectations. In the third quarter, Pandora showed further growth in most key markets, with strong momentum for future development.
The brand noted that extremely high purchase conversion rates from the reopening of physical stores, along with strong online sales growth, largely offset the sales decline caused by reduced store traffic.
Overall, 90% of Pandora's physical stores resumed operations in the third quarter, and it is expected that up to 95% of physical stores will be operational by the fourth quarter. As of now, Pandora has over 7,400 sales points in more than 100 countries, including more than 2,700 concept stores. The brand stated that it will continue to invest in potential development opportunities while preparing for the peak trading season in the fourth quarter. "However, temporary store closures due to the pandemic, social distancing measures, and reduced operating hours at some stores will continue to impact the brand's performance."