Danish jewelry maker Pandora (PNDORA.CO) mentioned final week {that a} sturdy efficiency in the USA spurred speedy gross sales development within the second quarter however gross sales in China fell.
Pandora, which goals to strengthen its model on this planet’s two greatest economies, mentioned its whole comparable gross sales in April-June jumped 7% in comparison with the identical quarter of 2019 earlier than the pandemic.
In the USA quarterly gross sales greater than doubled from a 12 months earlier and have been up 63% in comparison with 2019 as large authorities stimulus and vaccinations towards COVID-19 fuelled spending on items and providers.
Pandora mentioned it noticed indications that it was gaining extra market share in the USA, its greatest market, however cautioned that the excessive development would come down within the second half of the 12 months.
Pandora mentioned it noticed indications that it was gaining extra market share in the USA, its greatest market, however cautioned that the excessive development would come down within the second half of the 12 months.
Highlights
Robust efficiency in Q2 2021 with 13% natural development vs 2019 (+84% vs Q2 2020). On common, 15% of the bodily shops have been quickly closed throughout Q2. At present, round 8% are quickly closed.
Progress is pushed by the strategically necessary US market. Continued underlying sturdy efficiency is additional accelerated by the stimulus packages.
Sequential enchancment vs 2019 in key European markets as COVID-19 restrictions eased.
Efficiency in China stays weak – the primary steps to reposition the model might be taken throughout H2 2021.
On-line continued the sturdy efficiency in Q2 2021 with +132% natural development vs. 2019.
Pandora Brilliance take a look at launches is ongoing within the UK and progressing nicely. Determination on potential international launch to be taken in late 2021, creating a possible new product platform by democratizing diamonds.
Robust EBIT margin at 25.2% pushed by working leverage – lifted by unusually sturdy US development.
Monetary leverage was solely 0.4x NIBD to EBITDA by the top of Q2 2021.
Pandora to proceed money distribution. An additional DKK 1 billion is to be distributed over the following three months by way of a mixture of DKK 0.5 billion extraordinary dividends and share buyback of as much as DKK 0.5 billion.
Primarily based on the sturdy efficiency in Q2 and a just lately revised forecast for the remainder of the 12 months, the monetary steerage for 2021 was upgraded on 6 August to “natural development of 16-18%” (beforehand “above 12%”) and “EBIT margin of 23-24%” (beforehand “above 22%”). The steerage stays topic to elevated dangers because of the pandemic.
Alexander Lacik, President and CEO of Pandora, says:
“Our sturdy momentum continued within the second quarter of 2021, and we’re happy that we delivered stable development in comparison with 2019. Efficiency within the US and on-line continued to be sturdy, and in Europe most of our shops have now reopened. Following the launch of Phoenix, our new technique, we sit up for internet hosting our Capital Markets Day in September. The Govt Management Workforce will then current how Pandora will drive long-term sustainable and worthwhile development, constructing on the huge untapped alternatives inside our present enterprise.”
Pandora launches new DKK 500 million share buyback programme
On 4 Might 2021 Pandora initiated a share buyback programme of DKK 500 million, which was accomplished on 11 August 2021, cf. Firm announcement no. 642.
The Board of Administrators of Pandora are initiating a brand new share buyback programme, underneath which Pandora will repurchase shares for an mixture most quantity of DKK 500 million. The programme will start on 18 August 2021 and conclude no later than 29 October 2021.
The share buyback programme is applied in accordance with the secure harbour guidelines in Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 (market abuse regulation).
Pandora has appointed SEB because the lead supervisor of the programme.
The programme might be applied underneath the next framework:
The utmost whole consideration for Pandora shares purchased again within the interval of the programme is DKK 500 million;
Underneath the present authorization to accumulate treasury shares, and thus relevant to the programme, Pandora can purchase as much as 10% of the present nominal share capital;
The utmost variety of shares to be purchased per every day market session would be the equal to 25% of the common every day quantity of shares within the Firm traded on Nasdaq Copenhagen throughout the previous 20 enterprise days;
The acquisition worth paid in reference to the acquisition of treasury shares should not diverge from the worth quoted on Nasdaq Copenhagen on the time of acquisition by greater than 10%.
Pandora might terminate the programme at any time.
