Danish jewelry chain Pandora has cut its 2025 forecast due to a tough consumer environment in Q3, when it posted increased revenues. It stated that “the macroeconomic backdrop” was “very turbulent,” adding that “tariffs have had a negative effect on our profits.”
The jewelry house lowered its forecast for full-year comparable sales to be between 3 percent and 4 percent compared to a previous forecast of 4-5 percent; however, it maintained its estimate of 7 percent to 8 percent organic sales growth.
During the Q3 period, Pandora’s reported global sales were up 2.7 percent to DKK 6.27 billion (U.S.$964.2 million) in comparison to the same time period last year. In addition, the U.S. continued to be a positive area of business for Pandora, especially in custom bracelets, while there was a softer demand in China. Organic sales (which is based on local currency sales adjusted for structural changes) for Pandora grew 6 percent during the quarter, while like-for-like sales rose 2 percent. Sales declined in several key European countries, such as Germany, the U.K., Italy, and France, limiting overall sales gains.
Revenue from Pandora’s lab-grown diamond segment, which remains a very small part of the business, rose 17 percent to DKK 75 million (U.S.$11.5 million) in comparison to the same time frame last year.
Comparable sales declined, and operating profit (EBIT) fell to DKK 880 million (U.S.$135.4 million) — a 10 percent decrease in comparison to the same time frame last year, with lower operating margins. Pandora cited commodity cost increases, adverse foreign-exchange rate movements, and additional U.S. tariffs for the decline in profitability. Net income declined 18 percent to DKK 489 million (U.S.$75.2 million) in comparison to the same time frame last year.
“We continue to face difficulties caused by the challenging economic climate, but are confident in meeting all of our financial targets for the full year,” stated Alexander Lacik, Pandora’s president and chief executive officer. “We are optimistic regarding our future prospects, our exciting product pipeline, new marketing efforts, and our ability to maintain operational agility.“
Following this report, Pandora stock fell approximately 4 percent in early trading on Wednesday.
