Business is booming at Pandora as the world's biggest jeweller brushes off sector gloom.

Although shoppers have cut spending elsewhere, the Danish firm reported healthy sales and upgraded growth forecasts for the year.

It now expects annual sales between 9 per cent and 12 per cent higher than last year. In May it forecast a rise of between 8 per cent and 10 per cent. The upgrade came after sales rose 15 per cent in the second quarter as customers bought items such as charms costing as much as £350.