Pandora ups 2013 revenue expectations to £930m


Sales growth in H1 driven by new product and high replenishment.

Pandora has announced an update to its financial expectations for 2013, anticipating revenue of about DKK 8 billion (£930m) compared to its previous expectation of DKK 7.2 billion (£837m).

The Danish brand’s board of directors made the decision to update the company’s financial expectations following a strong performance in Q1 2013 that continued into the second quarter and July.

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Pandora has reported "significant revenue growth across all major regions", driven by continued strong sales of newly-launched products and high replenishment rates.

The brand’s preliminary results for Q2 2013 indicate revenue of approximately DKK 1.9 billion (£221m) and an EBITDA margin of approximately 27%.

Pandora says its like-for-like sales in concept stores in Q2 2013 was healthy, with UK sales up 11.6%, the US up 8.8%, Germany up 1.7% and Australia up 22.4% compared to the Q2 2012.

With a view to its updated financial guidance for 2013, Pandora expects an EBITDA margin of approximately 27% (from previously guided above 25%) and CAPEX to be approximately DKK 400 million (£46m), previously approximately DKK 300 million (£35m).

The CAPEX figure excludes the one-off payment of DKK 190 million (£22m) related to the purchase of IP rights from Trollbeads in Q1 2013. The increase in CAPEX is primarily related to expansion of production facilities in Thailand in order to prepare for future demand.

The brand is plotting the opening of about 175 concept stores in 2013, up from its previously guided figure of about 150 stores.

Pandora will release its full Q2 2013 report on August 13.

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