07 FEBRUARY 2024 | INTERIM FINANCIAL REPORT Q4 2023 | COMPANY ANNOUNCEMENT No. 841 | page
6 | 37
margins and returns on new store openings, there is significant value creation ahead for Pandora by continuing to
expand the network. For 2024, Pandora targets 75-125 net concept store openings and an additional 25-50 Pandora
owned shop-in-shop openings.
The ongoing rollout of Pandora’s store concept, Evoke 2.0, marks a significant milestone, with a plan to transform
around 60% of Pandora's owned and operated stores into this innovative concept by 2026. Evoke 2.0 optimally
utilises space, providing an intuitive and engaging experience to showcase Pandora as a full jewellery brand. For the
full year, Pandora opened 55 Evoke 2.0 stores, including refurbishments, and will further scale up the roll-out in 2024,
progressing towards the targeted 1,375-1,425 Evoke 2.0 concepts stores by 2026. Early results are encouraging,
with a more intuitive customer experience leading to longer dwell times, self-browsing and good performance across
segments. The store concept has now also shown good performance over peak trading periods where traffic levels
are elevated over certain periods. The CAPEX per Evoke 2.0 store will be roughly in line with current levels.
In 2023, Pandora made strategic strides through acquisitions, taking over a total of 54 concept stores. This included
35 concept stores in the US, 14 in Colombia, and 5 in Canada. The synergies are strong, reinforcing the value of
forward integration through brand consistency and improved operational efficiency.
Proposed total cash return of DKK 5.5 billion for 2024 underpins capital allocation commitment
In 2023, Pandora announced the highest total shareholder distribution in its history of DKK 6.4 billion which was
successfully completed by 2 February 2024. Today, in line with Pandora’s history of returning significant cash back to
shareholders every year, Pandora announces a total proposed shareholder distribution of DKK 5.5 billion. This includes
a proposed dividend of DKK 18 per share, up from DKK 16 per share last year, and a new share buyback programme
of DKK 4.0 billion which will commence on 8 February 2024 and complete no later than 31 January 2025. For further
details on the share buyback programme, please refer to the separate company announcement.
Phoenix strategy yielding positive results as Pandora concludes first chapter, meeting financial targets
With the FY 2023 results, Pandora has successfully concluded the first chapter of its Phoenix strategy. Highlighting
the success of the strategy, and despite the weak consumer backdrop, Pandora delivered on its initial organic growth
target set in 2021 of 5-7% CAGR between 2021-2023 with an organic growth CAGR of 7.5% over the period.
Furthermore, despite the inflationary environment Pandora met its target of EBIT margin of 25-27% by 2023 with
the margin ending at 25.0%.
During the Capital Markets Day in October 2023, Pandora highlighted that it will now look to elevate performance to
the next level as it embarks on the next chapter of the Phoenix strategy. The four strategic growth pillars of the
Phoenix strategy remain unchanged, but within the pillars Pandora has updated its key priorities to transform the
perception of Pandora into a full jewellery brand. As part of the strategic update, Pandora announced new financial
targets:
• Organic growth 7-9% CAGR 2023-2026
• EBIT margin 26-27% by 2026
The new organic growth target represents an upgrade relative to the first chapter of Phoenix announced in 2021 and
comprises of a targeted LFL growth CAGR of 4-6% and a contribution from network expansion of around 3% CAGR.
The growth targets reflect Pandora’s improved operating model alongside a range of current and new initiatives which
will be scaled up to drive solid and sustainable growth. When combined with an expected 1% annual revenue impact
from forward integration, the targets add up to 8-10% local currency CAGR over 2023-2026.
The new EBIT margin target of 26-27% equals 100-200 bp of margin expansion compared to the 2023 results. The