© Reuters. FILE PHOTO: Pandora merchandise are seen at their retailer on the Woodbury Frequent Premium Shops in Central Valley, New York, U.S., February 15, 2022. REUTERS/Andrew Kelly/File Picture
LONDON (Reuters) -Pandora, the world’s largest jewelry maker, mentioned on Wednesday its fourth-quarter gross sales in China missed expectations as a result of financial uncertainty in that market.
The corporate is aiming for total natural income development of 6%-9% in 2024, it mentioned, after reporting robust gross sales of its silver charms and bracelets final yr, which has helped its share value to greater than double for the reason that begin of final yr.
The 2024 development goal is according to a aim set in October for a 7-9% compound annual development price from 2023 to 2026.
Pandora (OTC:) additionally introduced a share buyback programme of as much as 4 billion Danish crowns ($580 million) after confirming robust fourth-quarter income and earnings.
Nonetheless, it mentioned quarterly gross sales in China missed its expectations, falling to 116 million crowns from 143 million in the identical quarter a yr earlier.
Pandora has been a uncommon vivid spot amongst retailers and types concentrating on aspirational shoppers with inexpensive luxurious gadgets.
The model, which bought 107 million items of jewelry in 2023, up from 103 million in 2022, has expanded its vary of bracelets, with costs beginning at $60 as much as greater than $2,000, and been opening new shops and transferring away from wholesale.
“They’ve improved their communication and advertising very considerably,” mentioned Jaime Vazquez de Lapuerta, portfolio supervisor at Bestinver in Madrid, which holds Pandora shares.
Pandora has an enormous alternative to open extra shops in its largest market, the US, he added. “Then you will have a possible turnaround in China, however you needn’t consider in that to be bullish on Pandora.”
Pandora’s income within the U.S. elevated by 2% to eight.3 billion crowns over 2023. Income in China fell by 9% to 564 million crowns over the yr.
($1 = 6.9329 Danish crowns)