Pandora, the renowned jewellery retailer, has revised its growth targets upward, citing the successful outcomes of brand and store network investments. The Danish company now sets its sights on a compound annual growth rate (CAGR) of 7-9% for the 2023-2026 period, accompanied by an ambitious EBIT margin target of 26-27% by 2026.
Specifically, Pandora has refined its like-for-like CAGR to 4-6%, a notable increase from the previous range of 3-5%. Additionally, the company anticipates a more significant contribution from its expanding store network, aiming for approximately 3% growth, compared to the previous 1-2% target.
However, Pandora is taking a cautious approach to its growth plans in China. While recognizing long-term potential in the Chinese market, the company acknowledges that establishing a substantial presence will require more time than initially anticipated. In 2021, Pandora had set an ambitious goal to triple its revenue in China from 2019 levels. Economic challenges such as a property market slowdown, subdued consumer spending, and high debt levels are impacting the Chinese economy and affecting Western brands and retailers with significant exposure to the country.
On a global scale, Pandora is targeting revenue between DKK 34 billion and DKK 36 billion (equivalent to $4.79 billion-$5.08 billion USD) by 2026, a notable increase from the approximately DKK 27 billion expected for 2023.
This revised growth strategy reflects Pandora’s commitment to strengthening its brand and expanding its reach in both established and emerging markets while navigating challenges in the ever-evolving global economic landscape.