Pandora necklace

Jewelry maker Pandora closes one in four stores worldwide

The Midtown Pandora store is decorated for the holidays on December 21, 2020 in New York City.

Noam Galai | Getty Images

Pandora said on Monday that new coronavirus lockdown measures forced it to close a quarter of its stores at the start of the year, even as it raised its full-year profit forecast for the second time in less than two weeks.

Pandora, the world’s largest jewelry maker, said consumers shifted spending from travel and services to jewelry in the fourth quarter, but a recent escalation of the Covid-19 pandemic has created a greater uncertainty about sales this year.

The company said in a statement that it expects organic growth of around minus 11% for 2020, compared to a late-December forecast of “at least 1 percentage point better than the high end of the range. forecast of minus 14% to minus 17%. “

The EBIT margin (earnings before interest and taxes) is expected at around 20%, against a forecast range of 17.5% to 19% at the end of December, he said.

While about 10% of physical stores on average were temporarily closed in the fourth quarter, the company had now closed 25% of its 2,700 stores worldwide.

Shares edged up after the release was released and was trading up 0.6% at 1352 GMT.

Pandora is expected to release its full 2020 results on February 4.