Pandora (PNDORA) Q3 2024 earnings summary

Executive summary

• Achieved 11% organic growth and 7% like-for-like growth in Q3 2024, with strong performance across core and new collections and double-digit EPS growth of 17%.

• Gross margin reached 80.1% (+110bp YoY), remaining above 80% for the second consecutive quarter, while EBIT margin was 16.1% (-40bp YoY), reflecting solid profitability despite margin pressures.

• Phoenix strategy investments continue to drive brand transformation, marketing, and network expansion, supporting increased consumer engagement and market share.

• Raised 2024 organic growth guidance to 11-12%, with EBIT margin guidance unchanged at around 25%.

• LFL growth: Europe 4%, US 6%, Rest of Pandora 14%; Germany standout at 42% LFL, China -33% LFL.

Financial highlights

• Q3 2024 revenue was DKK 6,103 million, up 11% year-over-year, with LFL growth at 7%.

• Gross margin reached 80.1% (Q3 2023: 79.0%), EBIT margin at 16.1% (Q3 2023: 16.5%).

• Net profit for Q3 2024 was DKK 595 million, with basic EPS of DKK 7.3 (Q3 2023: DKK 6.3).

• Net working capital improved to 5.9% of revenue, driven by flat inventories despite topline growth.

• CAPEX was 7.9% of revenue, and NIBD/EBITDA stood at 1.5x.

Outlook and guidance

• Organic growth guidance for 2024 raised to 11-12% (from 9-12%), with LFL growth guidance at 6-7%.

• EBIT margin guidance maintained at around 25% for 2024, despite FX and commodity headwinds.

• Q4 2024 LFL growth expected at 2-5%, reflecting tough prior-year comparatives and macro uncertainty.

• For 2025, EBIT margin could be up to 100bps lower due to commodity headwinds, with further mitigation actions under review.

• 2026 EBIT margin target of 26-27% faces 360bps headwind from higher silver/gold prices and FX; at least 140bps mitigation identified, with further cost programs underway.