Pandora reports 21% organic growth, highlights success of Marvel collaboration

Pandora has released its annual financial results showing a 21% organic growth in Q1 2022, highlighting the success of the Marvel collaboration launch in February, which made up 3% of business in the period.  

Results highlights included:

• 21% organic growth in Q1 2022
• Absolute EBIT up 45% from Q1 2021
• Online organic growth up 155% vs Q1 2019

In the UK organic growth was 30% in the first three months of the year compared to the same period in 2019. Other key European markets such as Italy, Germany and France also delivered double-digit growth.

Pandora's online channel also saw a strong performance of 155% against Q1 in 2019. Against Q1 2021 the online channel decreased by 17%, which the business accounts to 30% temporary store closures, which drove consumers to digital platforms.

Customers are also returning to stores, which were almost all open during the first three months of the year according to the brand. Own and operated stores recorded a growth of 65% vs Q1 2021.

The launch of the Marvel collaboration in February was highlighted in particular as a driver of growth, accounting for a 3% share of business. The jeweller said that the Disney franchise collection had outperformed both its previous Star Wars and Harry Potter collaborations, and that the "Infinity Ring" product proved particularly successful with 17,000 customers signing up on a waitlist. In total collaborations were up 41% in the first three months of the year.

The company further reiterated that all its business in Russia and Belarus, which included 153 stores and 66 other points of sales were "no longer considered part of Pandora" following the invasion of Ukraine. It said that the markets accounted for about 1% of revenue.

Pandora added that "despite negative impacts from the war, cost inflation, potential impact on consumer demand due to inflation and higher interest rates as well as COVID-19", it was expecting organic growth to be between 4% - 6%, up from 3% - 6%, in 2022, while EBIT margin guidance remained unchanged at 25% - 25.5%.