Dive Brief:
- Jewelry brand Pandora expects revenue to be between 34 billion and 36 billion Danish kroner (about $4.8 billion to $5.1 billion) in 2026, according to a press release Thursday. The company anticipates revenue of around 27 billion Danish kroner for 2023.
- Pandora released new financial targets as part of its Phoenix strategy, which launched in 2021 in order to drive profitable growth. The brand is targeting a compound annual growth rate of 7% to 9% from 2023 to 2026.
- Operating an asset-light business model is expected to generate between 16 billion and 17 billion Danish kroner in free cash flow from 2024 to 2026. The company is planning on opening hundreds of stores in the next few years.
Dive Insight:
Pandora’s new financial targets come off the heels of a successful update on its Phoneix strategy, per the press release.
“Looking back at the past few years, we are proud of our achievements. We have fundamentally changed how we work, and the organisation is much stronger. It’s clear that Pandora is a very different company today," Alexander Lacik, president and CEO of Pandora, said in a statement. "It’s time to take Phoenix to the next level and our new financial targets reflect our confidence in the future.”
Scaling its growth, Pandora will increase its investments in brand desirability and its store network. The company sells through over 6,500 points of sale across more than 100 countries, according to a presentation for Pandora’s capital markets day on Wednesday.
Pandora plans to improve its store capabilities in part by expanding engraving services, reaching about 1,450 stores with this offering in 2024. The brand plans to add 400 to 500 net store openings between 2024 and 2026, which includes concept stores and shop-in-shops, with a majority in the Americas. Pandora aims to have about 75% of concept stores to be owned and operated by the end of 2026.
