Outlook

Financial Guidance for 2020

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.