LONDON — Despite a single-digit uptick in sales and operating profit, Pandora has had a tough start to the year due to the sting of currency fluctuations and the threat of higher U.S. tariffs.
The Copenhagen-based jeweler published its first-quarter results late Tuesday, earlier than expected, due to a small downgrade in guidance for its 2025 EBIT margin.
The company is now expecting EBIT, or earnings before interest and taxes, to be “around 24 percent” rather than “around 24.5 percent,” reflecting the latest foreign exchange headwinds. The downgrade excludes the impact of U.S. tariffs that could come into effect following U.S. President Donald Trump’s 90-day pause.
In the first three months, sales rose 7 percent to 7.35 billion Danish kroner, or $1.12 billion. Underlying growth was 6 percent, while new store openings bolstered sales by 4 percent.
The company said underlying growth in the U.S. was 11 percent, while in Europe sales rose 4 percent, fueled by double-digit growth in several countries, including established markets such as Spain and Portugal.
The U.S. is by far Pandora’s largest market, generating revenue of 2.37 billion kroner, or $361 million, in the first quarter, around one-third of total revenue in period.
Operating profit in the period rose 9 percent to 1.64 billion kroner, or $250 million, while the EBIT margin was 22.3 percent, compared with 22 percent in the corresponding period last year.
Alexander Lacik, president and chief executive officer of Pandora, said the company was pleased with its start to the year, “especially given the very high volatility in the world around us. We do not control the external factors, but we do control how we execute on an already proven strategy that is growing our business.”
He added: “As we remain agile to the environment around us, there’s no change in our strategic plans and long-term vision for making Pandora the go-to destination for high-quality, branded jewelry.”
Winona Ryder in Pandora’s “Be Love” 2025 campaign.
Courtesy of Pandora/Craig McDean
Pandora maintained its full-year guidance of 7 to 8 percent organic growth despite the elevated macro uncertainty. Current trading in the second quarter shows underlying like-for-like growth in the midsingle digits.
The company said it is “actively preparing for various scenarios” related to the U.S. tariffs, adding that it will provide an update “as the potential impact on the 2025 guidance and 2026 targets becomes clearer.”
Pandora revealed it has been working on mitigating tariff measures for a while and has also “accelerated” certain cost measures that were already planned.
It plans to switch some sources of supply, and ship jewelry directly to Canada and Latin America rather than through Pandora’s U.S. distribution center. It will be able to ship directly to those regions in early 2026.
Pandora said it is currently planning for a range of tariff scenarios and will consider further price increases. It said the extent and timing of those price increases will only be determined “based on the concrete circumstances.”
Pandora manufactures its jewelry in Thailand, which means tariffs on U.S. imports could rise from 10 to 37 percent when the grace period ends.
The company said the macro volatility has not impacted its overall ambitions and it will continue to leverage its “Phoenix strategy” in the accessible jewelry segment. Pandora will continue to invest, focusing on “driving growth through brand heat, supported by an exciting product pipeline.”
In its statement, the company nodded to some of the highlights in the first quarter. In February, Pandora launched a follow-up to its Be Love marketing campaign, “which aims to transform the perception of Pandora into a full jewelry brand.”
The company added that its new online platform is off to an encouraging start, “with solid commercial metrics and an overall positive impact on brand key performance indicators.” Pandora also said it is “progressing well” on actions to offset the increase in commodity prices.
