LONDON — Regardless of a single-digit uptick in gross sales and working revenue, Pandora has had a troublesome begin to the yr as a result of sting of foreign money fluctuations and the specter of increased U.S. tariffs.
The Copenhagen-based jeweler revealed its first-quarter outcomes late Tuesday, sooner than anticipated, as a result of a small downgrade in steering for its 2025 EBIT margin.
The corporate is now anticipating EBIT, or earnings earlier than curiosity and taxes, to be “round 24 %” slightly than “round 24.5 %,” reflecting the newest overseas trade headwinds. The downgrade excludes the impression of U.S. tariffs that might come into impact following U.S. President Donald Trump’s 90-day pause.
Within the first three months, gross sales rose 7 % to 7.35 billion Danish kroner, or $1.12 billion. Underlying progress was 6 %, whereas new retailer openings bolstered gross sales by 4 %.
The corporate mentioned underlying progress within the U.S. was 11 %, whereas in Europe gross sales rose 4 %, fueled by double-digit progress in a number of international locations, together with established markets akin to Spain and Portugal.
The U.S. is by far Pandora’s largest market, producing income of two.37 billion kroner, or $361 million, within the first quarter, round one-third of complete income in interval.
Working revenue within the interval rose 9 % to 1.64 billion kroner, or $250 million, whereas the EBIT margin was 22.3 %, in contrast with 22 % within the corresponding interval final yr.
Alexander Lacik, president and chief govt officer of Pandora, mentioned the corporate was happy with its begin to the yr, “particularly given the very excessive volatility on the earth round us. We don’t management the exterior components, however we do management how we execute on an already confirmed technique that’s rising our enterprise.”
He added: “As we stay agile to the surroundings round us, there’s no change in our strategic plans and long-term imaginative and prescient for making Pandora the go-to vacation spot for high-quality, branded jewellery.”
Winona Ryder in Pandora’s “Be Love” 2025 marketing campaign.
Courtesy of Pandora/Craig McDean
Pandora maintained its full-year steering of seven to eight % natural progress regardless of the elevated macro uncertainty. Present buying and selling within the second quarter exhibits underlying like-for-like progress within the midsingle digits.
The corporate mentioned it’s “actively making ready for varied situations” associated to the U.S. tariffs, including that it’ll present an replace “because the potential impression on the 2025 steering and 2026 targets turns into clearer.”
Pandora revealed it has been engaged on mitigating tariff measures for some time and has additionally “accelerated” sure price measures that have been already deliberate.
It plans to change some sources of provide, and ship jewellery on to Canada and Latin America slightly than by means of Pandora’s U.S. distribution middle. It will likely be capable of ship on to these areas in early 2026.
Pandora mentioned it’s at the moment planning for a spread of tariff situations and can think about additional worth will increase. It mentioned the extent and timing of these worth will increase will solely be decided “based mostly on the concrete circumstances.”
Pandora manufactures its jewellery in Thailand, which implies tariffs on U.S. imports may rise from 10 to 37 % when the grace interval ends.
The corporate mentioned the macro volatility has not impacted its general ambitions and it’ll proceed to leverage its “Phoenix technique” within the accessible jewellery phase. Pandora will proceed to take a position, specializing in “driving progress by means of model warmth, supported by an thrilling product pipeline.”
In its assertion, the corporate nodded to a few of the highlights within the first quarter. In February, Pandora launched a follow-up to its Be Love advertising and marketing marketing campaign, “which goals to remodel the notion of Pandora right into a full jewellery model.”
The corporate added that its new on-line platform is off to an encouraging begin, “with stable business metrics and an general constructive impression on model key efficiency indicators.” Pandora additionally mentioned it’s “progressing properly” on actions to offset the rise in commodity costs.
