Pandora A/s · OMXCOP:PNDORA
Pandora A/s — Pandora A/S Ord — Q1 2025 Earnings Presentation
41 slides from Pandora A/s's earnings presentation, May 7, 2025
Slide 1: First Quarter Results 2025
FIRST QUARTER RESULTS 2025 7 May 2025
Slide 2: Agenda
AGENDA EXECUTIVE SUMMARY Phoenix strategy update Q1 2025 financials Financial guidance Appendix DISCLAIMER This presentation contains forward-looking statements, which include estimates of financial performance and targets. These statements are not guarantees of future performance and involve certai
Slide 3: Q1 Results: Delivering on the Phoenix strategy
Q1 RESULTS STRONG GROWTH SOLID PROFITABILITY Delivering on the 7% 80.4% Phoenix strategy Organic growth Gross margin, +110bp YoY Solid like-for-like 6% 22.3% LFL EBIT margin, +30bp YoY growth GROWTH ACROSS HIGH RETURN ON CAPITAL SEGMENTS AND EPS GROWTH Structurally high margins 2% 45% LFL for Core R
Slide 4: Targeting another year of profitable growth
2025 GUIDANCE TARGETING ANOTHER YEAR OF PROFITABLE GROWTH “We are pleased with how we’ve started the year, especially given the very high volatility in the world around us. We do not control the external factors, but we do control how we execute on an already proven strategy that is growing our busi
Slide 5: Agenda
AGENDA Executive summary PHOENIX STRATEGY UPDATE Q1 2025 financials Financial guidance Appendix 5 Pandora Q1 2025 | Investor presentation 7 May 2025
Slide 6: Good momentum across all pillars
STRATEGIC GROWTH INITIATIVES GOOD MOMENTUM ACROSS ALL PILLARS • Restaging the brand – transforming the • Art & Science – consumer-centric perception of Pandora jewellery concepts • Retail transformation (New store • Drive growth in core – charms & carriers concept) • Expand design aesthetics & accel
Slide 7: Well-positioned against heightened uncertainty
PHOENIX STRATEGY IS DELIVERING WELL-POSITIONED AGAINST HEIGHTENED UNCERTAINTY • Pandora remains well-positioned to navigate potential 3 YEAR LFL CAGR OF 6% OVER A PROLONGED external challenges: PERIOD OF LOW CONSUMER SENTIMENT • Continued investment behind the brand, people and 7% growth, driving ke
Slide 8: Driving higher brand desire and cultural relevance
BRAND | INVESTING CONTINOUSLY BEHIND THE BRAND DRIVING HIGHER BRAND DESIRE AND CULTURAL RELEVANCE FUELING BRAND EXPRESSION DRIVING BRAND BUZZ THROUGH STORYTELLING THROUGH THE QUARTER Pandora launched the next phase of the BE LOVE Extensive earned media coverage in top-tier outlets, campaign, taking
Slide 9: Bringing new aesthetics in Pandora's core
BRAND & DESIGN | EXCITING NEW DESIGNS TO BE LAUNCHED BRINGING NEW AESTHETICS IN PANDORA’S CORE New product launches (Minis and Talisman) in H2 2025 aims to drive brand heat and excitement in Pandora’s charms and carrier core. New designs play into Pandora’s strong Charm & Carriers heritage and story
Slide 10: Roll-out of online platform continues
BRAND | ELEVATING THE BRAND AT ALL TOUCHPOINTS ROLL-OUT OF ONLINE PLATFORM CONTINUES • Pandora’s largest brand window with around 700 million visits annually • New platform looks to significantly elevate the branded experience • Now live in 17 markets, including US, Australia and main European marke
Slide 11: A full jewellery brand: leveraging our strong core
DESIGN | GROWING THE CORE A FULL JEWELLERY BRAND: LEVERAGING OUR STRONG CORE LFL per segment • Robust 2% LFL growth in Q1 2025 across the Charms and Carriers core 35% • Growth supported by strong performance in 30% Collabs 25% • Strong pipeline of products planned for H2 2025 20% 15% Fuel with 10% m
Slide 12: Strong growth across other collections
DESIGN | FUELLING WITH MORE A FULL JEWELLERY BRAND: STRONG GROWTH ACROSS LFL per segment OTHER COLLECTIONS • 12% LFL growth within Fuel with more in Q1 2025, driven by Timeless and supported by PANDORA 35% ESSENCE 30% 25% • Solid performances across most collections with 20% good progress in Pandora
Slide 13: The US
MARKETS THE US • Strong start to 2025 with LFL accelerating to 11% in Q1, driven by increased traffic • The brand momentum is strong – unaided brand awareness and brand consideration keeps growing • Runway for growth remains high – market share still only at around 2% • Organic growth at 12%, suppor
Slide 14: Germany, UK, Italy and France
MARKETS GERMANY, UK, ITALY AND FRANCE LFL growth across total Europe at 4% - strong growth in many countries, including Spain and Portugal Within the four markets in Europe reported separately, LFL growth came in at -2%: • Germany delivered 1% LFL on the back of a tough comparative (67% LFL), in lin
Slide 15: Rest of Pandora
MARKETS REST OF PANDORA Rest of Pandora grew LFL at 8% with good growth across many markets • Amongst others, Spain, Portugal, Canada, Turkey, Chile and the Netherlands all delivered double-digit LFL • Organic growth at 11% fuelled by network expansion across many countries LIKE-FOR-LIKE 8% vs Q1 20
Slide 16: China and Australia
MARKETS CHINA AND AUSTRALIA China delivered -11% LFL, performance continues to be challenging • As part of the strategic optimisation of the store network, the first step was taken in Q1 with the closure of 10 concept stores • Pandora expect to close at least 50 concept stores in China in 2025 Austr
Slide 17: Driving consistent and profitable growth
MARKETS | NETWORK EXPANSION DRIVING CONSISTENT AND PROFITABLE GROWTH HIGHLY ATTRACTIVE STORE ECONOMICS (ILLUSTRATIVE AVERAGE METRICS FOR NEW STORE OPENINGS) Revenue, DKK EBIT margin, % CAPEX, DKK Payback ~7m (CS)*** 35-40% ~2m (CS) ~1 year** ~2.5m (SiS)*** ~0.5m (SiS) INCREMENTAL REVENUE FROM NETWOR
Slide 18: New store concept roll-out continues
BRAND | NEW STORE CONCEPT NEW STORE CONCEPT ROLL-OUT CONTINUES • 477 concept stores in the new format opened by Q1 2025, of which 44 are partner stores • During the first quarter, we have opened in prominent locations such as London, Oxford Street • Targeting 1,375 – 1,425 concept stores in the new
Slide 19: Agenda
AGENDA Executive summary Phoenix strategy update Q1 2025 FINANCIALS Financial guidance Appendix 19 Pandora Q1 2025 | Investor presentation 7 May 2025
Slide 20: Double-digit EPS growth
KEY FINANCIAL HIGHLIGHTS DOUBLE-DIGIT EPS GROWTH TOPLINE Q1 2025 Q1 2024 FY 2024 Revenue, DKK million 7,347 6,834 31,680 Organic growth, % 7% 18% 13% Like-for-like, % 6% 11% 7% FINANCIAL RATIOS Q1 2025 Q1 2024 FY 2024 Gross margin, % 80.4% 79.4% 79.8% EBIT margin, % 22.3% 22.0% 25.2% Cash conversion
Slide 21: Solid LFL and network expansion
REVENUE PERFORMANCE SOLID LFL AND NETWORK EXPANSION • The investments under Phoenix continues to yield REVENUE GROWTH, positive results, generating 6% LFL in Q1 Q1 2025 • A total of net 101 concept stores and net 99 4% Pandora operated shop-in shops opened over the past 12 months helped drive 4% net
Slide 22: EBIT margin in line with expectations
EBIT MARGIN EBIT MARGIN IN LINE WITH EXPECTATIONS EBIT MARGIN, Q1 2025 • The Q1 EBIT margin was up by 30bp Y/Y, in line EBIT MARGIN DEVELOPMENT with expectations and prior communication EXCL. NON-RECURRING ITEMS 0.6% • Despite headwind from commodity prices, the 0.1% 0.9% 22.9% 0.4% underlying, adju
Slide 23: Agenda
AGENDA Executive summary Phoenix strategy update Q1 2025 financials FINANCIAL GUIDANCE Appendix 23 Pandora Q1 2025 | Investor presentation 7 May 2025
Slide 24: Confirming organic growth guidance
2025 ORGANIC GROWTH GUIDANCE CONFIRMING ORGANIC GROWTH GUIDANCE Guidance assumptions: REVENUE • Pandora targets organic growth of 7-8% GUIDANCE, 2025 • LFL growth remain targeted at 4-5% 1% 8-9% 3% 7-8% • The guidance do not include any potential impact 33.2-33.5 from the elevated macroeconomic unce
Slide 25: Targeting strong margins, updating for FX headwinds
2025 EBIT MARGIN GUIDANCE TARGETING STRONG MARGINS, UPDATING FOR FX HEADWINDS EBIT MARGIN GUIDANCE, 2025 • Targeting continued strong profitability - despite 280bp of external headwinds 1.0% Around 0% 0.4% • EBIT margin guidance revised to “around 24%” 25.2% (previously “around 24.5%”), following in
Slide 26: 2026 margin target
UPDATE ON 2023 CMD EBIT MARGIN TARGET 2026 MARGIN TARGET What has changed since October 2023? • The original target of 26-27% was set based on commodity prices and FX rates as of September 25, 2023 EBIT MARGIN • Since then, the price of silver has increased significantly, TARGET, 2026 alongside with
Slide 27: Speed & agility in an uncertain environment
POTENTIAL TARIFF SCENARIOS & RELATED IMPACT ONGOING & PLANNED MITIGATION SPEED & AGILITY IN AN UNCERTAIN ENVIRONMENT DIRECT SHIPMENT TO LATIN AMERICA AND CANADA Pandora is planning for a range of tariff scenarios and is actively working on mitigation in the different scenarios SWITCH SOURCES OF Pand
Slide 28: Closing remarks
CLOSING REMARKS Pandora is on track to transform its Pandora is prepared and well positioned perception as a full jewellery brand. Q1 against a period of prolonged uncertainty 2025 was another step forward Despite commodity and FX headwinds, Strong line up for 2025 on brand Pandora continues to deli
Slide 29: A strong brand with vast growth opportunities
EQUITY STORY A STRONG BRAND WITH VAST GROWTH OPPORTUNITIES A STRONG BRAND AN ASSET-LIGHT, UNIQUE GROWTH A RESILIENT, DRIVING EPS IN AN ATTRACTIVE FULLY INTEGRATED OPPORTUNITIES SUSTAINABLE GROWTH IN THE CATEGORY BUSINESS MODEL BUSINESS MID-TO-HIGH TEENS Pandora stands as the sole Our asset-light bus
Slide 30: Appendix
APPENDIX 7 May 2025 PANDORA
Slide 31: Strong sustainability performance in 2024
2025 GUIDANCE STRONG SUSTAINABILITY PERFORMANCE IN 2024 17% #2 Pandora has been named one Reduction in total greenhouse of the 100 Most Sustainable gas emissions compared to 100% Companies in the World by 2019 baseline Corporate Knights in their annual Global 100 ranking. Pandora rank 48th Renewable
Slide 32: Pandora Consumer
PANDORA CONSUMER GLOBAL PURCHASE FUNNEL – DEVELOPMENT I PANDORA – FEMALE AGE GROUPS Base: All women PANDORA 18-24 YO 25-40 YO 41-64 YO Unaided awareness 35 39 33 36 Aided awareness 84 87 82 85 CR3 33 40 41 27 Considered1 28 34 34 23 CR4 62 61 64 61 Purchased2 18 21 22 14 Ownership 36 45 41 31 N=28,7
Slide 33: Revenue development by channel
REVENUE DEVELOPMENT BY CHANNEL Organic Share of DKK million Q1 2025 Q1 2024 growth revenue Pandora operated1 retail 6,176 5,495 11% 84% - of which concept stores 4,040 3,662 8% 55% - of which online stores 1,659 1,397 17% 23% - of which other points of sale 477 437 15% 6% Wholesale 989 1,127 -10% 13
Slide 34: Key markets revenue and growth overview
KEY MARKETS REVENUE AND GROWTH OVERVIEW Organic Share of DKK million Q1 2025 Q1 2024 LFL Growth Revenue US 2,368 2,027 11% 12% 32% China 96 110 -11% -15% 1% UK 864 854 2% -1% 12% Italy 508 565 -9% -11% 7% Australia 234 203 2% 17% 3% France 255 274 -6% -7% 3% Germany 499 472 1% 6% 7% Total key market
Slide 35: Store network development
STORE NETWORK DEVELOPMENT Total concept stores O&O concept stores Growth O&O Growth O&O Growth Growth stores stores NUMBER OF CONCEPT Q1 2025 Q1 2025 O&O Q1 2025 Q1 2025 STORES Q1 2025 Q4 2024 Q1 2024 / Q4 2024 /Q1 2024 Q1 2025 / Q4 2024 /Q1 2024 US 480 484 457 -4 23 415 16 49 China 188 198 212 -10
Slide 36: Consolidated income statement
CONSOLIDATED INCOME STATEMENT DKK million Q1 2025 Q1 2024 FY 2024 Revenue 7,347 6,834 31,680 Cost of sales -1,436 -1,410 -6,391 Gross profit 5,910 5,424 25,289 Sales, distribution and marketing expenses -3,657 -3,325 -14,844 Administrative expenses -613 -592 -2,471 Operating profit 1,641 1,507 7,974
Slide 37: Working capital
WORKING CAPITAL Share of preceding 12 months’ revenue Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Inventories 14.3% 14.0% 16.0% 14.9% 15.2% Trade receivables 2.2% 3.8% 2.5% 2.8% 3.8% Trade payables -10.1% -12.3% -9.7% -9.2% -9.2% Other net working capital elements -2.3% -7.3% -2.9% -2.4% -2.9% Total 4.2
Slide 38: Commodity hedging and cost of goods sold break down
COMMODITY HEDGING Hedged and realised purchase prices AND COST OF GOODS (at use of the silver and gold for production) SOLD BREAK DOWN Realised in Hedged Hedged Hedged Hedged Hedged USD / OZ Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Silver price 27.9 31.3 32.2 32.01 30.31 29.8 Gold price 2,482
Slide 39: Investor relations contact details
INVESTOR RELATIONS CONTACT DETAILS Investor Relations team Share information Trading symbol PNDORA Bilal Aziz Identification number/ISIN DK0060252690 SVP, Investor Relations & Treasury GICS 25203010 +45 3137 9486 biazi@pandora.net Number of shares 79,000,000 Apparel, Accessories & Luxury Sector Good
Slide 40: Disclaimer
DISCLAIMER This Company announcement contains forward-looking statements, including, but not limited to, guidance, expectations, strategies, objectives and statements regarding future events or prospects with respect to the Company’s future financial and operating results. Forward-looking statements
Slide 41: Thank you
THANK YOU First quarter results 2025 – 7 May 2025