Pandora delivers solid growth but trims forecast due to trade tariffs

Pandora has lowered its annual profit margin forecast for 2025, despite a strong start to the year, as the falling US dollar and concerns over trade tariffs add pressure to the Danish jewellery brand’s bottom line.

The company reported 7% organic growth in the first quarter, with US sales leading the way. Like-for-like growth in North America hit 11%, making it the standout region for the brand. Overall revenue reached DKK 7.3 billion (around £840 million), driven by a combination of store performance and new openings.

Operating profit also rose 9% year-on-year, with a strong gross margin of 80.4% and an EBIT margin of 22.3%.

However, the company has revised its full-year EBIT margin guidance down to "around 24%", from a previous forecast of 24.5%. It blamed the downgrade on recent currency headwinds and rising commodity costs and noted that US tariff uncertainty could add further strain later this year.

The company’s 2026 margin target has also been trimmed slightly, now expected to land at "around 25%", down from earlier expectations.

CEO Alexander Lacik, said: "We are pleased with how we’ve started the year, especially given the very high volatility in the world around us. We do not control the external factors, but we do control how we execute on an already proven strategy that is growing our business."

Pandora manufactures most of its jewellery in Thailand, meaning it could be heavily exposed if the US reinstates or escalates tariffs on Thai imports. A previous 37% tariff on goods from Thailand has been temporarily paused, but further changes could impact the brand’s pricing strategy.

The company said it is actively planning for alternative logistics routes and aims to begin shipping directly to markets like Canada and Latin America by 2026 to reduce its reliance on US warehouses.

Earlier this year, Pandora raised its prices by 4%, following a 5% hike in October 2024. Further price increases haven’t been ruled out if cost pressures persist.

Looking ahead, Pandora is sticking with its full-year sales growth forecast of 7–8%, despite growing uncertainty in the global economy. Like-for-like sales in Q2 so far are tracking at mid-single-digit growth.

Pandora, known for its silver charm bracelets, is continuing to invest in UK retail.  Earlier this year, it added a fourth store to its portfolio of Oxford Street locations.

At the time, Sarah Chenery, Marketing Director at Pandora UK, said: "With Pandora Oxford Street West, we set out to create more than just a normal store – we wanted to deliver a powerful statement for the brand."