LONDON — Danish jewelry giant Pandora said Friday it expects 6 percent sales growth for 2025, slightly lower than its prior guidance of 7 percent to 8 percent.
The company said 2025 earnings before interest and taxes are expected to be around 7.8 billion Danish kroner, or $1.22 billion, and the firm expects its EBIT margin to be in line with its guidance of around 24 percent.
Markets took a dim view of the announcement, with share prices falling 11.44 percent in mid-afternoon trading to 599 Danish kroner, or $93.33 at current exchange rates.
The company will report its audited full-year 2025 results on Feb. 5.
On the same day, Berta de Pablos-Barbier, who took up the roles of president and chief executive officer of Pandora on Jan. 1, will outline the group’s strategic priorities for 2026.
“As new CEO, my focus will be to navigate the current market environment, reduce our commodity exposure and course-correct in select areas to accelerate profitable growth. Pandora continues to pursue significant untapped growth opportunities as a full jewelry brand. Our fundamentals are strong. We are building a bigger Pandora,” she said.
The preliminary and unaudited results showed the brand’s top-line performance was impacted by generally weak consumer sentiment, with the North America region being particularly impacted in the fourth quarter of 2025. It reported 2 percent like-for-like growth as trading in November and December was below expectations due to lower traffic in the stores.
The brand logged various degrees of negative growth in fourth-quarter 2025 across Asia-Pacific, Latin America, Europe, the Middle East and Africa. Spain, Poland and Portugal performed better than expected, and helped offset ongoing weakness in Italy. Performance in Germany and the U.K. improved in the period, albeit remaining in negative territory.
The brand said its bottom-line performance showed strong gross margins and cost discipline, which in part offset external headwinds from commodity prices, foreign exchange rates and tariffs.
Piral Dadhania, an analyst at Royal Bank of Canada Europe, said Pandora’s revenue growth that was below consensus-expectations will be negatively received by the market, with concerns around sales momentum as well as commodity price-related margin pressure intensifying at the time of a CEO change.
“Pandora has executed fairly well in a fairly tough macro environment, helped by U.S. and rest of the world outperformance, as well as gifting and jewelry category resilience. That said, we estimate underlying volumes are trending negative, and new product introductions are not having the same impact,” Dadhania said.
Dadhania added that earnings revisions are negative owing to significant silver commodity price gains and foreign exchange, which will continue to be a drag on Pandora’s gross margin in 2027.
He also pointed out that further details of Pandora’s creative innovation efforts to reduce reliance on silver as a raw material would mark a step change in its product positioning and offer.
– With contributions from Lily Templeton (Paris)
