LONDON — Consideration, American customers — it’s time to refill on charms, pearls, chains and bangles as a result of if U.S. import tariffs rise this summer time, mid-price jewellery goes to get costlier.
“The fact is, I don’t see a state of affairs the place, if there’s a 40 % tariff imposed, individuals wouldn’t elevate their costs,” mentioned Pandora’s president and chief government officer Alexander Lacik in an interview following the first-quarter outcomes.
“Some firms would go bankrupt if they didn’t elevate costs. I believe everyone goes to maneuver [on prices] finally, and there shall be a serious, main hike for the U.S. buyer,” he added.
With a 3rd of its gross sales within the U.S. and its manufacturing base in Thailand, Pandora is within the eye of the storm — as are so many different modern jewellery firms that manufacture in Asia and promote within the U.S.
“India, Vietnam, Thailand and China are all locations the place jewelers like us, within the mid-price section, supply just about all of their jewellery,” he mentioned.
He believes that tariffs will affect the U.S. client greater than the jewellery firms themselves.
“If we think about a state of affairs the place [U.S. President Donald Trump] goes to undergo with these excessive tariffs, then the entire sea degree rises. You could possibly argue that the relative place between the jewellery manufacturers shall be maintained,” he mentioned.
Pandora CEO Alexander Lacik
Courtesy WJI2023
In its newest outcomes assertion on Tuesday, Pandora mentioned it was making contingency plans within the face of all of the uncertainty, and would supply the markets with an replace “because the potential affect on the 2025 steering and 2026 targets turns into clearer.”
Pandora added that it has accelerated sure value measures, and is making ready to modify some sources of provide. As of early 2026, will probably be able to ship jewellery on to Canada and Latin America fairly than by means of Pandora’s Baltimore, Md., distribution heart.
Lacik mentioned Pandora’s dimension, geographic attain and wholesome gross margin will give it flexibility if tariffs do come into impact.
“One of many strengths we now have is that our gross margin is already working at a really excessive degree, greater than most of our rivals. Meaning I’ve extra [scope] to rejig my worth equation,” mentioned Lacik, including that Pandora’s dimension — it operates in additional than 70 international locations, and had income of 31 billion Danish kroner, or $4.31 billion, in 2024 — was a bonus.
Within the first three months of 2025, gross sales rose 7 % to 7.35 billion Danish kroner, or $1.12 billion. Underlying development was 6 %, whereas new retailer openings bolstered gross sales by 4 %.
Pandora’s blue eternity attraction.
The corporate additionally downgraded in steering for the 2025 EBIT margin. It’s now anticipating EBIT, or earnings earlier than curiosity and taxes, to be “round 24 %” fairly than “round 24.5 %,” reflecting the newest international alternate headwinds.
The downgrade excludes the affect of U.S. tariffs that might come into impact following Trump’s 90-day pause.
Lacik mentioned that as a result of Pandora is a world firm, it has choices. It might hike costs within the U.S. solely, or elevate them by smaller quantities in varied markets the world over. “I believe we now have to attend and see the place these tariffs land, and we’ll take it from there,” he mentioned.
Pandora supplied up the main points of two eventualities in its first-quarter assertion.
If tariffs stay at their present degree, 10 % on Thailand and 145 % on China, Pandora will see an affect of 250 million Danish kroner, or $38 million, in 2025, and annualized affect of 300 million Danish kroner, or $46 million, from then on.
If the U.S. chooses to impose the brand new regime, tariffs will rise to 37 % on imports from Thailand and stay at 145 % for China. That may result in a 500 million kroner, or $76 million, affect in 2025, and an annualized affect thereafter of 900 million kroner, or $137 million.
Pandora mentioned that in each eventualities, it might take into account additional value will increase. It already elevated costs by 4 % in April.
Attraction bracelets from Pandora’s anniversary collaboration with Disney.
The corporate stays upbeat regardless of the uncertainty.
Pandora mentioned that gifting, which represents round 60 % of its enterprise, “has traditionally confirmed resilient during times of financial uncertainty. In difficult instances, customers are likely to gravitate towards trusted, established manufacturers — additional reinforcing Pandora’s place as a pacesetter in accessible luxurious.”
The corporate additionally sought to reassure the markets, including that “stress testing confirms that even in extreme financial eventualities, Pandora will stay extremely worthwhile and proceed to generate extra money which shall be returned to shareholders. Pandora stays well-positioned to ship sustainable worth by means of a doubtlessly unstable interval.”
For his half, Lacik mentioned planning for tariff modifications is all in a day’s work. “This isn’t the worst we’ve been by means of. I believe that turning round Pandora was tougher as a result of we had been attempting to take one of many largest startups on the earth and make it right into a bit extra mature enterprise. That was a a lot greater job.”
He added that the tariff drama is “unwelcome noise, however we are able to cope with it.”
Pandora’s shares closed up 1.7 % at 998.80 kroner, or $152.
