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Asharq Al-Awsat
Asharq Al-Awsat
Lifestyle
Asharq Al-Awsat

Pandora Reaffirms Forecast Even as US, China Sales Disappoint

Pandora products are seen at their store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. (Reuters)

Danish jewelry maker Pandora reported second-quarter sales in line with expectations and reaffirmed its annual forecast, despite disappointing sales in the United States and China.

Organic growth in the US market was down 12% in the quarter compared to the previous year, when sales in its biggest market were boosted by coronavirus-related economic stimulus packages.

"We maintained solid growth compared with pre-pandemic levels, despite negative impacts by lockdowns in China and a tough US comparison due to the stimulus cheques last year," Chief Executive Alexander Lacik said in a statement.

The world's largest jewelry maker by production capacity said traffic into its 219 stores in China fell 60% in the second quarter compared to a year earlier due to "the entire network either being closed or severely impacted" by coronavirus-related shutdowns.

The company expects China to pull down its financial performance for the rest of the year.

Pandora said sales in the second quarter grew 10% to 5.66 billion Danish crowns ($773.33 million), compared to an average of 5.61 billion crowns expected by analysts in a poll conducted by the company.

Pandora still expects full-year organic growth between 4% and 6%. It also reaffirmed annual outlook for operating profit margin at 25.0%-25.5%.

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