By Jacob Gronholt-Pedersen
COPENHAGEN (Reuters) - Danish jewellery maker Pandora (CO:PNDORA) said it expects full-year sales to be at the lower end of its forecast range, in part due to a challenging retail environment in its top market, the United States.
Pandora said it still expects 2017 revenue in the range of 23 billion-24 billion Danish crowns (2.72 billion pounds-2.84 billion pounds) and an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of around 38 percent.
But while sales in the United States rose 4 percent in local currency terms, it said the rise was driven by the acquisition of franchise stores rather than higher mall traffic.
"The retail environment in the United States remained challenging, with most brands in the affordable space being increasingly promotional," the company said in a statement.
However, the launch of its Disney collection in Europe, Middle East and Africa had received a "positive initial reception," it said.
Pandora saw dramatic sales growth over the past decade as its customisable bracelets and charms gained huge popularity, prompting its share price to rise eight-fold between 2013 and 2016.
But the stock has lost around 36 percent of its value this year, as growth rates have come down in recent quarters, in part due to disappointing sales in the United States, where it saw a drop in shopping mall activity.
Shares rose as much as 5.5 percent in opening trade and were up 2.2 percent at 605.50 crowns by 0810 GMT.
The company reported third-quarter sales of 5.19 billion crowns, compared with the 5.13 billion estimated by analysts polled by Reuters.
EBITDA for the period stood at 1.97 billion crowns, compared with an expected 1.94 billion.