Pandora flags headwinds as it reiterates its full-year outlook, keeping its guidance intact while warning of mounting challenges. The Danish jewelry maker, best known for its charm bracelets, is navigating rising costs, tariffs, and regional weaknesses but remains confident about achieving its 2025 goals.
Pandora confirmed its expectation of organic sales growth in the range of 7 to 8 percent for 2025 and an EBIT margin of around 24 percent. These targets show that management is holding its ground, even though external pressures are growing. The company pointed to tariffs in the United States, higher commodity costs, and unfavorable currency fluctuations as the main risks. Executives stressed that although these headwinds are real, the group is taking steps to reduce their impact.
One of Pandora’s biggest challenges is import duties on its jewelry, most of which is manufactured in Thailand. Even though the proposed tariff was reduced from 36 percent to 19 percent, the financial impact remains significant. Pandora estimates that the additional cost will be around 200 million Danish kroner in 2025, with a possible increase to 450 million kroner in 2026. To respond, Pandora is reshaping its supply chain. It is diversifying sources of raw materials, rerouting shipments directly to Canada and Latin America to reduce reliance on U.S. distribution, and exploring more efficient logistics. Price increases are also part of the strategy to manage tariff costs without heavily eroding profitability.
Alongside tariffs, Pandora is feeling the pressure of rising silver and gold prices. Silver prices are now at a 15-year high, pushing costs upward for jewelry makers. Currency fluctuations have added another layer of unpredictability, squeezing margins further. To address these pressures, Pandora has raised prices several times. There was a 5 percent increase in October 2024, followed by a 4 percent hike in April 2025, and another small increase in August 2025. These steps are designed to offset higher raw material costs, but repeated price hikes may eventually test consumer patience.
Pandora’s second-quarter results for 2025 showed mixed signals. Organic sales grew 8 percent, in line with expectations, while operating profit reached 1.29 billion kroner. Revenue came in at 7.08 billion kroner, slightly below analyst forecasts of 7.17 billion. Momentum slowed toward the end of the quarter. Like-for-like sales in July rose only 2 percent, compared with stronger figures earlier in the year. This slowdown raised questions about whether the company can maintain growth through the rest of 2025.
Performance varied significantly by region. The U.S. market showed resilience, continuing to drive sales. In contrast, Europe was weaker. Sales in the United Kingdom fell by 9 percent, France and Italy dropped by 7 percent, and Germany declined by 6 percent. The slowdown in Europe has been a concern for investors, leading to a 12 to 13 percent fall in Pandora’s stock price following the earnings release. This reaction reflected doubts about whether the company can sustain its growth momentum while battling headwinds in multiple regions.
Pandora is rolling out several initiatives to tackle these challenges. A major cost-cutting program is underway, targeting procurement, logistics, distribution, and in-store operations. The savings from these efforts are expected to show results from early 2026 onward. In addition to cost control, Pandora is focusing on operational agility. The company has a strong product pipeline planned for the second half of 2025, along with marketing campaigns aimed at boosting demand. Management believes these initiatives will help balance the effects of tariffs, metal prices, and weaker regional demand.
Chief Executive Alexander Lacik has maintained a confident outlook despite the headwinds. He highlighted the strength of the Pandora brand and the company’s global footprint as key advantages. Lacik emphasized that the company’s strategy is designed not only to address current issues but also to set Pandora up for long-term growth.
Tariffs remain one of the biggest risks to profitability. Pandora’s success in managing them will depend on its ability to shift supply chains and continue adjusting prices without harming demand.
European sales need to stabilize for the company to maintain a healthy balance across regions. Rebounding in the UK, France, Italy, and Germany is crucial.
The cost-cutting program has the potential to provide a significant buffer in 2026. Until then, the company must rely on pricing power and operational agility.
Multiple price hikes have kept margins steady, but there is a limit to how much consumers will tolerate. Pandora needs to ensure that its jewelry remains attractive and affordable to a broad audience.
Pandora flags headwinds while holding firm to its full-year outlook. The company expects to grow sales by 7 to 8 percent and achieve an EBIT margin of 24 percent in 2025. Challenges from U.S. tariffs, rising metal prices, and weaker European sales are real, but Pandora is taking active steps to reduce their impact. The coming months will be crucial as the company tests its ability to balance higher costs with consumer demand. If it manages to keep sales steady while implementing cost cuts and maintaining brand strength, Pandora may yet prove that its growth story remains intact.
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