Pandora Sets New Financial Targets

Pandora, the Danish jeweler, has announced its plans to increase investments in order to drive revenue growth and achieve new financial goals. The company's strategy for 2021 has already shown promising results, with investments in the brand, store network, organization, and personnel all paying off. As a result, Pandora is now embarking on a new chapter of growth.

In its statement released during an investor day, Pandora emphasized its commitment to becoming a leading jewelry brand in the affordable luxury market. To achieve this, the company will be increasing investments in enhancing brand desirability and expanding its store network. In addition to these initiatives, Pandora is also focusing on sustainability by aiming to transition to 100% recycled silver and gold by 2025, as well as leading the way in the utilization of lab-grown diamonds.

Looking ahead, Pandora has set ambitious targets for organic growth between 2023 and 2026. The company aims to achieve a 7%-9% growth rate, which will be comprised of 4%-6% like-for-like growth and approximately 3% expansion through its network. Furthermore, Pandora has set a goal of achieving an earnings before interest and tax (EBIT) margin of 26%-27% by 2026. It expects its revenue to reach between 34 billion and 36 billion Danish kroner ($4.79 billion-$5.07 billion) by the same year, with an estimated EBIT of DKK8.8 billion-DKK9.7 billion.

In terms of financial performance, Pandora anticipates generating DKK16 billion-DKK17 billion in free cash flow from 2024 to 2026. Moreover, the company plans to return DKK14 billion-DKK17 billion in cash to its shareholders during the same period.

Pandora's commitment to growth and sustainability showcases its determination to establish itself as a prominent player in the jewelry industry. With increased investments and ambitious financial targets, the company is positioned for a promising future.