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Pandora Foresees Better-Than-Expected 2020 Results
In spite of COVID-19 restrictions and temporary store closures, December revenue exceeded expectations.
Pandora saw 10 percent of its physical locations temporarily close in the fourth quarter, but the company’s annual results are expected to surpass its guidance.
Copenhagen, Denmark—Pandora is expecting its 2020 results to exceed guidance.
The Danish jewelry company was preparing for a bleak December with reduced store traffic due to the COVID-19 pandemic, but December revenue came in above expectations.
Its fourth quarter saw positive growth in October and November.
The organic revenue growth for 2020 is expected to be at least 1 percentage point higher than the high end of its guidance range of -14 to -17 percent.
Its EBIT margin is expected to exceed the high end of its 17.5 percent to 19 percent range.
During the fourth quarter, on average, more than 10 percent of its physical stores were temporarily closed due to COVID-19 restrictions.
“The negative impact on performance from COVID-19 store restrictions appears to have been offset by a non-recurring positive impact from reallocation of consumer spending away from travelling and services towards gifting and discretionary goods,” said Pandora in a statement about its guidance.
Pandora will release its fourth quarter interim report on Feb. 4, 2021.
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