Danish jewellery giant Pandora has reported mixed results in its latest quarterly update, with global revenues increasing modestly while UK sales showed a notable decline. Between April and June, the company generated 7.1 billion Danish kroner (£820 million) globally, representing a 3% year-on-year rise on a like-for-like basis.
However, Pandora’s UK operations experienced a 9% drop in sales, attributed in part to a weak end-of-season performance and higher price points. The brand has implemented several price increases over the past year—including a 5% rise in October, a 4% increase in April, and another low single-digit adjustment in August—to offset surging silver and gold costs. Pandora is also evaluating additional price adjustments to mitigate rising commodity expenses.
Pandora operates around 6,900 stores and concessions worldwide, cementing its position as the largest jewellery brand globally. The company specializes in accessible luxury pieces crafted from recycled gold and silver, a proposition that continues to resonate with consumers despite the challenging market environment.
US Tariff Challenges
The company is preparing for a financial impact of 450 million Danish kroner (£52 million) next year due to US tariffs on products shipped from Thailand, China, Vietnam, India, and other regions. To manage these costs, Pandora is exploring alternative supply routes, including direct shipments to Canada and Latin America, and sourcing materials within the US where feasible.
Pandora’s president and CEO, Alexander Lacik, emphasized that the brand’s global footprint and distinctive storytelling continue to support strong consumer engagement, allowing the company to balance regional ups and downs effectively. He added that despite macroeconomic pressures and commodity volatility, Pandora has maintained high single-digit organic growth and robust profitability.
Looking ahead, Pandora plans to intensify marketing efforts in the second half of the year to attract more customers, while continuing to navigate currency fluctuations, rising material costs, and trade-related headwinds.
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IMAGE: Reuters
