Jewellery retailer Pandora raises growth targets

Jewellery retailer Pandora raised its growth targets on Thursday as it said investments in the brand and store network were paying off, but it sounded a note of caution on China.

The Danish company said it now targeted a compound annual growth rate of 7-9% for the 2023-2026 period and an EBIT margin of 26-27% by 2026.

Pandora now aims for a like-for-like compound annual growth rate of 4-6%, up from 3-5%, and a higher contribution from the expansion of its store network of around 3%, up from 1-2%.

In China, Pandora said it still sees long-term growth potential but “building a sizeable business in China will be a longer journey than originally anticipated”. In 2021 Pandora said it aimed to triple revenue in China from the 2019 levels.

A property slump, weak consumer spending and high debt levels are weighing on China’s economy, hurting many Western brands and retailers with a big exposure to China.

Globally Pandora said it targeted revenue of 34 billion-36 billion Danish krone ($4.79 billion-$5.08 billion) in 2026, up from around 27 billion krone expected for 2023.