By Scott Kanowsky
Investing.com -- Copenhagen-listed shares in Pandora A/S (CSE:PNDORA) jumped by more than 8% on Tuesday after the Danish jeweler backed its full-year guidance despite flagging both macroeconomic and geopolitical uncertainties.
The group confirmed its 2022 outlook of 4% - 6% organic growth, along with earnings before interest and tax margin of between 25% - 25.5%.
Trading in the fourth quarter is also on track to reach the "upper end of the implied guidance range" thanks to a decision to raise prices by an average of 4% and rein in spending on advertising. Analysts at Jefferies noted that the final three-month period of Pandora's fiscal year now look "increasingly de-risked."
"With strong financials and our position in affordable gifting, we are well equipped to weather a potential recession and seize relevant investment opportunities, for example to expand our store network," said president and chief executive officer Alexander Lacik in a statement.
He added that Pandora is also taking "precautionary measures" to ensure the company's profitability if these circumstances change.
The Jefferies analysts said third-quarter results were also buoyed by a "surprisingly resilient sales environment," with revenue at Pandora's key U.S. market growing organically by 56% compared to pre-pandemic levels.
On a year-on-year basis, quarterly sales in the U.S. dropped by 3%. Pandora said this decline stemmed from a tough comparison to the same timeframe in 2021, when Americans were given a financial boost from COVID-era stimulus checks.
Outside of the U.S., Pandora's units in Australia and the U.K. posted double-digit organic growth, while Germany remained "healthy." However, France was hit by lower promotional activity and Italy saw some signs of weakening consumer sentiment.
Analysts at RBC (TSX:RY) called these regional returns "uneven."
Meanwhile, Pandora said it will distribute DKK 5.3 billion (DKK 1 = $0.1345) to its shareholders in 2022, which is equal to about 13% of its market capitalization.