Trump announces trade deal with EU following months of negotiations
COPENHAGEN - Pandora (OTC:PNDRY) A/S, the Danish jewelry manufacturer and retailer known for its customizable charm bracelets, reported a 7% organic growth in the first quarter of 2025, signaling a solid start to the year amid a volatile global market. The company attributes this performance to its ongoing Phoenix strategy and a strong like-for-like (LFL) sales increase, particularly in the United States and online.
The company’s LFL growth in the U.S. accelerated to 11%, while Europe saw a more modest increase of 4%, with some established markets like Spain and Portugal experiencing double-digit growth. However, the four European markets reported separately saw a slight decline of 2%. The Rest of Pandora markets remained robust with an 8% rise.
Pandora’s gross margin improved to 80.4%, a year-over-year increase of 110 basis points, despite facing headwinds from rising commodity prices. This margin strength was supported by strategic pricing, operational efficiencies, and reduced forward integration headwinds. The company’s EBIT margin for the quarter also rose slightly to 22.3%, up from 22.0% in the same period last year.
The firm’s leverage remained low with a net interest-bearing debt (NIBD) to EBITDA ratio of 1.4x. Additionally, Pandora launched a DKK 4.0 billion share buyback program in early February, contributing to a 19% growth in earnings per share (EPS) for the quarter.
Despite the uncertain macroeconomic environment, Pandora is committed to its Phoenix strategy, which focuses on maintaining its position as a leading brand in the accessible jewelry segment. The company’s "BE LOVE" marketing campaign and a new online platform have shown positive results, with the "Core" segment experiencing a 2% LFL growth and the "Fuel with more" segment driving a 12% LFL increase.
Pandora is actively managing the impact of commodity price increases and foreign exchange rates, which have provided an additional 70 basis point headwind since the end of January 2025. As a result, the company now expects an EBIT margin of "around 25%" for 2026, excluding any potential tariff impacts.
For 2025, Pandora maintains its guidance of "7-8% organic growth" but has adjusted its EBIT margin guidance to "around 24%" from the previous "around 24.5%", mainly reflecting recent foreign exchange challenges. The company is also preparing for various scenarios related to U.S. tariffs and will update its guidance accordingly.
Current trading in the second quarter of 2025 shows continued mid single-digit LFL growth levels. Alexander Lacik, President and CEO of Pandora, expressed satisfaction with the company’s performance and reiterated their focus on executing a proven strategy to grow the business.
This report is based on a press release statement from Pandora A/S.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.