Jewellery retailer Pandora has today raised its growth targets, saying investments in the brand and store network were paying off, but it sounded a note of caution on China.
The company, which gave its updated outlook ahead of a capital markets day in London today, also said it would expand into other Asian countries including India.
Pandora, an "affordable luxury" brand selling jewellery from silver charm bracelets to lab-grown diamonds, now targets a compound annual growth rate of 7-9% for the 2023-2026 period and an EBIT margin of 26-27% by 2026.
It now aims for a like-for-like compound annual growth rate of 4-6%, up from 3-5%, and a higher contribution from the expansion of its store network of around 3%, up from 1-2%.
The company's shares are up around 45% this year as investors bet on the success of Pandora's "Phoenix" strategy launched in 2021 which has seen it increase marketing spend and open more stores.
"We have fundamentally changed how we work, and the organisation is much stronger," Pandora's CEO Alexander Lacik said in a statement.
In China, Pandora said it still sees long-term growth potential but "building a sizeable business there will be a longer journey than originally anticipated". In 2021 Pandora said it aimed to triple revenue in China from the 2019 levels.
A property slump, weak consumer spending and high debt levels are weighing on China's economy, hurting many Western brands and retailers with a big exposure to China.
Pandora, which aims to open between 225 and 275 new concept stores in 2024-2026, said it would start expanding into countries like South Korea, Japan and India.
Pandora's biggest market is the US, accounting for 30% of its revenue in 2022, with the UK in second place with 14%. China accounted for 3% of revenue.
Globally the company targets revenue of 34 billion-36 billion Danish krone ($4.79 billion-$5.08 billion) in 2026, up from around 27 billion krone expected for 2023.
