Danish jewellery maker Pandora has today warned of increased uncertainty around its full-year earnings forecast despite reporting record first-quarter sales and slightly raising its sales guidance.
"We are very pleased with the strong start to the year delivering record revenue for a first quarter," chief executive Alexander Lacik said in a statement.
Pandora now expects full-year organic growth to come in between 4% to 6%, compared to a previous forecast of 3% to 6%.
But it said its forecast for 2022 was subject to "elevated uncertainty" due to the conflict in Ukraine, inflation and Covid.
It kept its forecast for growth in earnings before interest and tax margin (EBIT) unchanged at 25% to 25.5% despite seeing inflationary pressure and increased costs for energy, transport and raw materials, such as silver and gold.
"Pandora has historically been successful in mitigating cost increases through efficiency and cost savings initiatives. This work continues," the company said.
The world's largest jewellery maker by production capacity had not seen any major impact from Russia's actions in Ukraine in the first quarter. Russia, Belarus and Ukraine only accounted for 1% of revenue in 2021.
The company said it saw sales in the first quarter grow 21% to 5.7 billion Danish crowns, a record and above an average of 5.2 billion expected by analysts in a poll compiled by the firm in April.
