Tonygreat7
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Danish jeweler Pandora Online Store Australia Tuesday backed its full guidance despite lower first-quarter growth in China and rising costs from store acquisitions, new product launches as well as currency headwinds.
The company, which sells Cheap Pandora Bracelets, rings and earrings in around 7,700 stores world-wide, said net profit slipped 15% to 1.16 billion Danish kroner ($186 million) in the first quarter from DKK1.36 billion in the same period a year earlier. Analysts polled by FactSet had expected a net profit of DKK1.2 billion.
"We have good momentum on our strategy towards 2022," said Chief Executive Anders Colding Friis. "We are also pleased with the positive reception of our 2018 pandora new Spring collection, including Pandora Shine. As anticipated, sales growth has started at a moderate pace, and is expected to improve as we gradually introduce more newness in our product assortment throughout the year."
Pandora Charms Online expects group revenue to increase 7% to 10% in local currency in 2018. To drive revenue it will continue to increase the owned-and-operated part of its store network and will also launch new products. As a consequence, the company anticipates an Ebitda margin of around 35% this year, lower than its 2017 figure.
"Furthermore, Pandora Rings On Sale expects a full year impact on revenue of around DKK1.0 billion from the full year effect of acquisitions made during 2017 as well as acquisition of stores in 2018," it said.
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