PANDORA UPGRADES FINANCIAL EXPECTATIONS FOR 2013 - REVENUE NOW EXPECTED TO BE APPROX. DKK 8.6 BILLION AND EBITDA MARGIN APPROX. 30%

Based on the preliminary results for Q3 2013, the Board of Directors of PANDORA has decided to upgrade the Company's financial expectations for 2013.

The first nine months of 2013 have shown solid performance, with revenue growth across all major regions, despite headwind from foreign exchange rates, particularly in Q3 2013.

PANDORA's CEO Allan Leighton said: "Sales momentum continued in Q3 2013, with better than expected strong sales-in and sales-out performance in all major markets, and a significant step up in the new markets, where an increased share of revenue went through to the bottom line, due to improved operational leverage. As a result of the combination of these factors and increased confidence in our ability to supply this level of demand we are upgrading our guidance".

The revenue for Q3 2013 was DKK 2,255 million, an increase of 25.7% (32.9% in local currency) compared to Q3 2012. The main drivers are continued strong sales of newly launched products, continued strong revenue growth in new markets as well as global network expansion. Product prices have remained largely stable against Q3 2012.

During the first nine months of 2013, PANDORA has opened 116 Concept stores and PANDORA expects an acceleration of openings in Q4 2013.

Like-for-like sales-out in PANDORA's Concept stores in Q3 2013 continued to be strong with US sales-out up 12.6%, UK up 13.6%, Germany up 8.2% and Australia up 25.2% compared to Q3 2012.

The gross margin for Q3 2013 was 66.2% (Q3 2012: 64.1%).

Operational expenses for Q3 2013 were DKK 785 million (sales and distribution expenses: DKK 354 million, marketing expenses: DKK 211 million, administrative expenses: DKK 220 million). For Q4 2013, PANDORA expects an increase in sales, distribution and marketing expenses due to seasonality. Administrative expenses are expected to remain largely unchanged compared to previous quarters in 2013.

The EBITDA margin for Q3 2013 was 33.8% (Q3 2012: 28.0%).

At the end of Q3 2013, sales return provisions equated to approximately 8% of 12 months rolling revenue value.The continuous success of the Company's newer products has resulted in lower product returns. Therefore, provisions for future returns at the end of the year are expected to remain at around 8%, marginally lower than previously communicated 9%. The change had a positive effect on revenue of approximately DKK 80 million and approximately 1 percentage point on the EBITDA margin in Q3 2013.

UPDATED FINANCIAL GUIDANCE FOR 2013
For 2013, PANDORA expects revenue to be approximately DKK 8.6 billion (from previously guided approximately DKK 8 billion) and expects an EBITDA margin of approximately 30% (from previously guided approximately 27%).

PANDORA expects CAPEX to be around DKK 400 million. The CAPEX figure is exclusive the one-off payment of DKK 190 million related to the purchase of IP rights from Trollbeads A/S as well as the investment related to the acquisition of the distributor in Brazil.

PANDORA continues to expect an effective tax rate of approximately 19%.

In 2013, PANDORA expects to open approximately 195 Concept stores (from previously guided approximately 175).

A full financial report for Q3 2013 will be released on 12 November 2013, where executive management will elaborate further on the results.

ABOUT PANDORA
PANDORA designs, manufactures and markets hand-finished and modern jewellery made from genuine materials at affordable prices. PANDORA jewellery is sold in more than 70 countries on six continents through approximately 10,300 points of sale, including approximately 1,000 Concept stores.

Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs over 7,300 people worldwide of whom 5,200 are located in Gemopolis, Thailand, where the company manufactures its jewellery. PANDORA is publicly listed on the NASDAQ OMX Copenhagen stock exchange in Denmark. In 2012, PANDORA's total revenue was DKK 6.7 billion (approximately EUR 900 million). For more information, please visit www.pandoragroup.com.

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