Pandora said organic sales grew 15 percent to DKK 6.7 billion (USD 987 million) for the second quarter, despite continuing sales declines in the Danish jeweller’s China and Australia markets.
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During the second quarter, like-for-like (LFL) sales increased 8 percent.
By region, the Copenhagen-based company said LFF sales in mainland China dropped a whopping 23 percent, widening from a 17 percent decline in the first quarter.
The company said it continues to invest in media and its brand in the Chinese market, and is reducing promotional levels at the same time. Looking ahead, Pandora said it will continue to focus on driving key collections and driving its core brand ideology in Chinese to build the brand.
Elsewhere in the Asia Pacific region, Australian LFL sales were down 8 percent, hurt by a continuing low consumer sentiment, and heavy promotional activity.
Rest of the World sales on a LFL basis were up 13 percent, which included Japan, up by double digits during the three months.
The company said its operating profit rose to DKK 1.34 billion in the second quarter, from DKK 1.19 billion a year earlier.
Despite the weight of its Asia Pacific market, Pandora raised its full-year global organic growth guidance to 9-12 percent (previously 8-10 percent), with LFL guidance raised to 5-7 percent (previously 4-6 percent) for the year.
“Our strategy continues to take Pandora to new heights despite general consumer spending being somewhat sluggish,” said Alexander Lacik, president and CEO of Pandora.
“We have successfully started the journey to make Pandora known as a full jewellery brand, and our results show that consumers like what they see. Thanks to our strong performance, we are again raising revenue guidance for 2024 and look to the second half of the year with optimism.”
Last September, Pandora revealed the departure of David Allen, managing director of its Pacific and Greater Asia region, after 12 years working for the Copenhagen-based company.