By Isabelle Yr Carlsson and Helen Reid
COPENHAGEN (Reuters) -Pandora, the world's largest jewellery maker, raised its full-year revenue guidance on Thursday after beating first quarter sales and profit forecasts as it won market share in the United States, its biggest market.
The Danish company's shares jumped 5% in early trading.
Pandora has invested heavily in marketing, store openings, and broadening its range of rings, necklaces, and lab-grown diamonds, though its charm bracelets ranging from $60 to more than $2,000 still make up around 60-70% of sales.
Sales jumped 11% in the first quarter to 6.8 billion Danish crowns ($977.8 million), including a 9% increase in the United States, where the brand is gaining market share even as overall demand for jewellery has weakened.
"The reason we are gaining share fundamentally is because we keep investing in this brand," CEO Alexander Lacik told Reuters in an interview. "Even when there is a shrinking pie, you will find winners and losers."
Operating profit rose to 1.51 billion crowns from 1.26 billion a year earlier, compared with 1.32 billion expected by analysts polled by the company.
Pandora now expects organic revenue growth of 8%-10% this year, compared with 6%-9% previously. It kept its operating margin guidance at around 25%.
Charm bracelets, a staple of 90s fashion, have enjoyed a renaissance, trending on social media platforms like TikTok.
Lacik said social media contributed to Pandora's growth but was not the underlying driver.
"This is a result of the overarching programme that Pandora has been working on for many years now, and I think maybe we've hit a sweet spot with the type of audience that we're trying to serve," Lacik said.
In North America, Pandora's expansion into lab-grown diamond jewellery piqued shoppers' interest and increased their demand for the whole range of Pandora products, the company said.
China was a weak spot with sales down 17% in like-for-like terms, which Pandora blamed on a challenging market as it works to relaunch the brand there.
($1 = 6.9546 Danish crowns)