© Reuters. FILE PHOTO: Pandora products are seen at their store at the Woodbury Common Premium Outlets in Central Valley, New York, U.S., February 15, 2022. REUTERS/Andrew Kelly/File Photo
LONDON (Reuters) -Pandora, the world’s biggest jewellery maker, said on Wednesday its fourth-quarter sales in China missed expectations due to economic uncertainty in that market.
The company is aiming for overall organic revenue growth of 6%-9% in 2024, it said, after reporting strong sales of its silver charms and bracelets last year, which has helped its share price to more than double since the start of last year.
The 2024 growth target is in line with a goal set in October for a 7-9% compound annual growth rate from 2023 to 2026.
Pandora (OTC:) also announced a share buyback programme of up to 4 billion Danish crowns ($580 million) after confirming strong fourth-quarter revenue and earnings.
However, it said quarterly sales in China missed its expectations, falling to 116 million crowns from 143 million in the same quarter a year earlier.
Pandora has been a rare bright spot among retailers and brands targeting aspirational consumers with affordable luxury items.
The brand, which sold 107 million pieces of jewellery in 2023, up from 103 million in 2022, has expanded its range of bracelets, with prices starting at $60 up to more than $2,000, and been opening new stores and moving away from wholesale.
“They have improved their communication and marketing very significantly,” said Jaime Vazquez de Lapuerta, portfolio manager at Bestinver in Madrid, which holds Pandora shares.
Pandora has a big opportunity to open more stores in its biggest market, the United States, he added. “Then you have a potential turnaround in China, but you don’t need to believe in that to be bullish on Pandora.”
Pandora’s revenue in the U.S. increased by 2% to 8.3 billion crowns over 2023. Revenue in China fell by 9% to 564 million crowns over the year.
($1 = 6.9329 Danish crowns)
This story originally appeared on Investing
