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Pandora Reports Strong Q4 2023 Performance, Sets Ambitious Targets for 2024

Pandora has reported a successful Q4 in 2023, with a 12% increase in sales. The company's annual sales reached 28.13 billion Danish kroner, marking an 8% organic growth from 2022. Despite a setback in China, Pandora has set ambitious targets for 2024, with a projected 6 to 9 percent sales growth and an EBIT margin of around 25 percent.

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Mahnoor Jehangir
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Pandora Reports Strong Q4 2023 Performance, Sets Ambitious Targets for 2024

Pandora Reports Strong Q4 2023 Performance, Sets Ambitious Targets for 2024

The international jewelry giant, Pandora, has concluded its fourth quarter of 2023 with a robust 12 percent growth in sales, amounting to 10.82 billion Danish kroner (approximately $1.56 billion). The company's annual sales have reached a staggering 28.13 billion Danish kroner (around $4.06 billion), marking an 8 percent organic growth from the previous year, and surpassing the projected growth of 5 to 6 percent.

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Regional Performance

The United States, which comprises nearly 30 percent of Pandora's business, saw a 10 percent growth. Germany experienced an unprecedented 39 percent increase, a success attributed to its digital-centric media model. France reported a modest 6 percent growth, while the U.K. and Italy's sales remained relatively unchanged. In contrast, China's performance was disappointing, with a 13 percent decrease in sales.

Outlook for 2024 and Shareholder Returns

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Despite the setback in China, Pandora remains optimistic about its future prospects. The company has set a target of 6 to 9 percent sales growth and an EBIT margin of approximately 25 percent for 2024. Additionally, Pandora has announced a share buy-back program worth 4 billion Danish kroner and proposed a dividend of 18 Danish kroner per share.

Market Reactions

While RBC Capital Markets analyst Piral Dadhania acknowledges the company's solid execution, there are concerns about the conservative nature of the growth guidance and the potential lack of EBIT margin expansion, despite the revenue growth.

Pandora's President and CEO, Alexander Lacik, has expressed satisfaction with the strong performance across the holiday season in 2023. He underscored the success of the Phoenix growth strategy and set ambitious targets for 2024, despite the setback in China.

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