{"id":1404575,"date":"2023-08-16T02:05:00","date_gmt":"2023-08-16T06:05:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1404575"},"modified":"2023-08-16T02:05:00","modified_gmt":"2023-08-16T06:05:00","slug":"pandora-wins-massive-market-share-as-lab-grown-diamonds-in-hot-demand","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/pandora-wins-massive-market-share-as-lab-grown-diamonds-in-hot-demand\/1404575\/","title":{"rendered":"Pandora Wins “Massive” Market Share As Lab-Grown Diamonds In Hot Demand"},"content":{"rendered":"

Pandora Wins “Massive” Market Share As Lab-Grown Diamonds In Hot Demand<\/span><\/p>\n

\n

Pandora, the world’s largest jewelry brand, upgraded its full-year revenue outlook following a solid second-quarter earnings report. As the industry faces a contraction, the Danish jewelry giant is capturing a significant market share due primarily to the soaring demand for its lab-grown diamonds<\/a>.\u00a0<\/p>\n

“Given our solid performance so far, our updated guidance now sees another year of positive organic growth,”\u00a0<\/em>Pandora CEO Alexander Lacik wrote in a statement.\u00a0<\/p>\n

Pandora updated its full-year projections, anticipating an organic sales growth of 2% to 5%, compared to the previous estimate of -2% to 3%. Before today’s announcement, Wall Street analysts were forecasting 3% sales growth for the year based on a survey provided by the company.<\/p>\n

Lacik told Bloomberg in a phone interview that the company is winning a “massive” market share this year as it grows amid mounting macroeconomic uncertainty and an industry in contraction.\u00a0<\/p>\n

Lacik said,\u00a0“We’re building market share in a very tough environment, which just shows that the brand is growing stronger and stronger all the time.”\u00a0<\/em><\/p>\n

He said, “Pandora is back to growth,” the plan is to introduce new collections with lab-made diamonds to all the company’s top markets.<\/p>\n

Even though lab-created stones made up less than 1% of the revenue in the first half, these cheaper alternatives to mined gems represented Pandora’s fastest-growing segment.\u00a0<\/p>\n

Hot demand for synthetic stones is likely due to thrifty consumers who no longer can afford the real thing.\u00a0<\/p>\n

<\/a><\/p>\n

Here are the earnings highlights from the second quarter:<\/strong><\/p>\n

Ebit before significant items DKK1.19 billion, estimate DKK1.17 billion<\/em><\/p>\n

Revenue DKK5.89 billion, estimate DKK5.73 billion<\/em><\/p>\n

Organic revenue +5%, estimate +3.06%<\/em><\/p>\n

Net income DKK778 million, estimate DKK819.8 million<\/em><\/p>\n

Ebitda DKK1.69 billion, estimate DKK1.7 billion<\/em><\/p>\n

And full-year:<\/strong><\/p>\n

Sees organic revenue +2% to +5%, saw -2% to +3%, estimate +3.08% (Bloomberg Consensus)<\/em><\/p>\n

\u00a0Still sees adjusted Ebit margin about 25%, estimate 25.6%<\/em><\/p>\n

Analysts were overwhelmingly pleased with the results, with Jefferies highlighting the ability to navigate the challenging US market.\u00a0<\/p>\n

Here’s more commentary from analysts (courtesy of Bloomberg):<\/strong><\/p>\n

RBC Capital Markets, Piral Dadhania (underperform)<\/strong><\/p>\n

Pandora posted better-than-expected results, with revenue and gross margin coming ahead of expectations<\/em><\/p>\n

Dadhania sees “modest” consensus earnings upgrades<\/em><\/p>\n

\u00a0Jefferies, Frederick Wild (hold)<\/strong><\/p>\n

Results show Pandora is navigating a difficult US market “surprisingly well”<\/em><\/p>\n

Expects debate to stay focused on resilient organic growth dynamics against the uncertainty inherent in a margin guidance that so heavily relies on 4Q inflection<\/em><\/p>\n

“But the fact remains the stock has managed to navigate challenges in key markets relatively well, even as peers have struggled”<\/em><\/p>\n

Bloomberg Intelligence, Deborah Aitken and Andrea Ferdinando Leggieri<\/em><\/strong><\/p>\n

“Pandora’s upgraded 2023 organic-growth outlook to 2-5% could still be cautious given its 2Q revenue beat and accelerated trading in 3Q to date”<\/em><\/p>\n

Shares of Pandora in Copenhagen are flat after the earnings release. Shares have rebounded in the last year after peaking around DKK 937 in late 2021.\u00a0<\/p>\n

<\/a><\/p>\n

Lab-grown diamonds are gaining popularity, a reflection of a more budget-conscious consumer.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 08\/15\/2023 – 22:05<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/pandora-wins-massive-market-share-lab-grown-diamonds-hot-demand<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Pandora Wins “Massive” Market Share As Lab-Grown Diamonds In Hot Demand Pandora, the world’s largest jewelry brand, upgraded its full-year revenue outlook following a solid…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1404575","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1404575","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1404575"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1404575\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1404575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1404575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1404575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}