On 8 October 2020, Pandora updated financial guidance for the fiscal year 2020. Pandora continues to consider the macroeconomic environment and future COVID-19 development as uncertain and unpredictable. The updated financial guidance should thus be considered contingent on its underlying assumptions.
Financial guidance for 2020
- Organic growth: -14% to -17% (previous guidance: “-14% to -20%”)
- EBIT margin: 17.5% to 19.0% (previous guidance: “16% to 19%”)
Assumptions behind updated financial guidance
- There will be no new material lockdowns
- There may be some local lockdowns (not nationwide) of physical stores
- Up to 10% of the physical stores will be temporarily closed for the rest of 2020
- No material deterioration of the general macroeconomic environment and consumer spending
- Social distancing requirements will have a negative impact on revenue in Q4 2020
Based on the above assumptions and an expected larger negative impact from COVID-19 restrictions in Q4 2020, Pandora expects full-year organic growth and EBIT-margin to end in the upper half of the previously guided range.
Total sell-out growth for 2020 is expected to be roughly equal to the organic growth. All other elements of the financial guidance are unchanged.
Mid-term financial aspirations
Pandora’s aspiration for the mid-term horizon is to deliver sustainable positive organic growth and industry-leading profitability. Organic growth will be driven by positive total like-for-like growth.