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Pandora raises profit guidance after improved sales

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File Photo: A general view of the Pandora shop in Riga,
File Photo: A general view of the Pandora shop in Riga,

COPENHAGEN (Reuters) - Danish jewellery-maker Pandora <PNDORA.CO> on Thursday upwardly revised its profit guidance after seeing stronger sales and a big boost to its online business in the third quarter, it said in a statement released after the market closed.

"In the third quarter of 2020, the underlying brand momentum continued to develop strongly as Pandora experienced a further improvement in the majority of the main markets," the firm said.

It sees EBIT-margin for the year in the range of 17.5% to 19%, up from a previous guidance of 16% to 19%.

Online organic sales growth increased by 89% in the third quarter compared to the same period last year, largely offsetting a drop in customers in physical stores, Pandora said, but temporary store closures continued to dent performance.

Around 90% of physical stores had remained open in the third quarter on average, a trend the company expects to continue in the fourth quarter.

Pandora now expects organic growth for the year in the range of -14% to -17%, narrowed up from a previous guidance of -14% to -20%.

Pandora publishes its third quarter earnings on Nov. 3. Pandora operates in more than 100 countries through 7,400 points of sale, including more than 2,700 concept stores.

(Reporting by Nikolaj Skydsgaard; Editing by Alexandra Hudson)