Shares in Pandora jumped 17% after a surge in online sales and the reopening of most of its stores led the company to lift its guidance for the full year.
The Danish jeweler now expects revenue for the year to decline between 14% and 17%, compared to a drop of 14% to 20%, it said last week. Approximately 90% of Pandora’s stores were open during the third quarter, with another 5% operating by the end of quarter. Online sales rose 89% during the period, largely offsetting reduced traffic in stores, the company noted. Sales during the July-to-September period fell 5% year on year.
“In the third quarter, the underlying brand momentum continued to develop strongly as Pandora experienced a further improvement in the majority of the main markets,” the company said.
Although sales improved as the store network reopened, temporary closures, as well as other Covid-19 restrictions and social-distancing requirements, still impacted the business, Pandora noted. The jeweler took that into account when issuing its new forecast, which also assumes that up to 10% of its store network will be closed during the fourth quarter, and that there will be no further nationwide lockdowns.
The company will issue its full third-quarter results on November 3.