Denamrk-based jewellery company Pandora has revealed plans to increase investments to elevate its brand desirability and store network and expedite revenue growth.
The plans are the next stage of its Phoenix strategy, which was launched in 2021.
As part of the plans, it will launch new campaigns to restage the brand next year. The company has already started its journey toward this goal.
By 2026, the brand plans to transform nearly 60% of Pandora’s owned and operated stores into the new Evoke 2.0 concept.
This is intended to increase the in-store consumer experience while boosting the company’s presence as a full jewellery brand.
Pandora aims to open 225-275 net additional concept stores and 175-225 net Pandora-owned shop-in-shops through 2024-2026.
The company also seeks to strategically widen its product assortments by adding new and underserved categories and aesthetics.
As per the updated outlook, the jewellery retailer expects to achieve revenue of DKr34bn-36bn ($4.78bn-$5.06bn) by 2026, compared with the expectation of around DKr27bn for 2023.
Its earnings before interest and taxes (EBIT) are anticipated to range from DKr8.8bn to DKr9.7bn by 2026.
Pandora also targets earnings per share (EPS) of mid to high teens for the 2023-2026 period.
During the period, the company is targeting a compound annual growth rate (CAGR) of 7-9% and aims for an EBIT margin of 26-27% by 2026, increasing from around 25% in 2023.
Pandora expects a like-for-like (LFL) compound annual growth rate of 4% to 6% over the period and network expansion of approximately 3%.
The retailer said it is on track to transition to 100% recycled silver and gold by 2025 and is also pioneering lab-grown diamonds.
Pandora president and CEO Alexander Lacik said: “Looking back at the past few years, we are proud of our achievements. We have fundamentally changed how we work and the organisation is much stronger. It’s clear that Pandora is a very different company today.
“This solid foundation, combined with a proven strategy that will build Pandora into a full jewellery brand, now allows us to lift our growth target to 7-9% organic revenue CAGR. It’s time to take Phoenix to the next level and our new financial targets reflect our confidence in the future.”
