Pandora’s shares soar in Copenhagen following the release of its results and an upward revision to its operating margin forecasts

(Il Sole 24 Ore Radiocor) - Pandora’s shares soar in Copenhagen following third-quarter results that exceeded expectations and an upward revision to operating margin forecasts. In detail, the group recorded a 4 per cent rise in like-for-like sales for the quarter, exceeding the analysts’ consensus by 2 per cent and the highest estimate by 3 per cent, whilst revenue rose by 6% to 6.694 million Danish kroner, compared with 6.269 billion in the same period of the previous year. The operating margin rose to 15.9% from 14% a year earlier. In October, like-for-like sales growth stood at 1 per cent. “This figure was negatively affected by reduced promotional activity. Underlying trends remain solid, with like-for-like growth of around 3 per cent,” the company said.

The Danish group has subsequently revised its EBIT margin forecast upwards: for the full year 2026, it expects an operating margin of between 22.5% and 23%, compared with the previous estimate of between 22% and 23%, whilst for next year it estimates a margin of 14%–15% (including non-recurring items) and 15.5%–16.5% (excluding non-recurring items). Previously, it had forecast a margin of over 12 per cent and over 14 per cent, respectively.

According to analysts at RBC Capital Markets, Pandora could further raise its margin target for next year. This will depend on the implementation of the company’s strategy to introduce platinum-plated jewellery, they add. Earlier this year, Pandora announced its intention to start selling platinum jewellery as part of a strategy to diversify away from silver, aimed at protecting profitability from sharp fluctuations in precious metal prices.