Jewellery maker Pandora's shares jump after full-year guidance raised

FILE PHOTO: A general view of the Pandora shop in Riga, Latvia Febuary 4, 2020. REUTERS/Ints Kalnins

COPENHAGEN (Reuters) -Shares in Pandora rose more than 6% on Wednesday after “solid” sales momentum in December prompted the jewellery maker to raise its full-year earnings guidance.

Despite the closure of more than 10% of its 2,700 stores worldwide in the fourth quarter because of lockdown measures, the company benefited as customers apparently shifted spending towards gifting and discretionary goods and away from travelling and services, Pandora said.

In a statement, it said it expected organic growth for 2020 to be at least 1 percentage point better than the high end of its guidance range of minus 14% to minus 17%.

The EBIT (earnings before interest and tax) margin is expected to exceed the top end of the guidance range of between 17.5% and 19%, it said.

Shares rose 6.2% to a 32-month high following the announcement. At 1436 GMT, they were trading 3.5% higher at 681 Danish crowns each.

Reporting by Jacob Gronholt-Pedersen; editing by David Evans and Barbara Lewis