UPDATE 1-Denmark's Pandora confirms third-quarter profit jump

Tue Nov 12, 2013 2:42am EST

* Q3 operating profit 708 mln DKK vs 463 mln in Q3 2012

* Sales grew more than 50 percent in Europe and Asia Pacific

* Sales is not developing as well as expected in the U.S. -analyst (Adds comments, details)

COPENHAGEN, Nov 12 (Reuters) - Danish jewellery maker Pandora confirmed a leap in third-quarter profits after raising its full-year forecasts two weeks ago thanks to strong sales growth in Europe and Asia Pacific.

"We are pleased with the third quarter result, which confirms that the business has re-established a base platform to build from," Chief Executive Allan Leighton said in a report.

Third-quarter operating profit rose to 708 million Danish crowns ($127.27 million) from 463 million a year earlier.

The company confirmed that the revenue, as revealed on Oct. 31, grew to 2.26 billion crowns in the third quarter from 1.79 billion in the same quarter last year.

Sales in Europe grew by 51 percent in local currencies, while sales in Asia Pacific leapt by 58 percent. Sales in the Americas increased by 15 percent.

"The United States is not developing as well as expected," Sydbank analyst Soren Lontoft Hansen said, adding that might put a little downward pressure on the company's shares on Tuesday.

Pandora reiterated a forecast for full-year revenue of around 8.6 billion crowns and a full-year operating margin of around 30 percent.

Pandora had a strong stock market debut in 2010 but ran into trouble after a move into more expensive jewellery.

The company, which manufacturers its jewellery in Thailand and sells it in more than 70 countries, launched a new strategy to alter its product mix and focus on less expensive items. ($1 = 5.5630 Danish crowns) (Reporting by Teis Jensen, additional reporting by Shida Chayesteh, editing by Jason Neely and Elizabeth Piper)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.