JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com -- Pandora (CSE:PNDORA) on Friday reported second-quarter 2025 results that came broadly in line at the EBIT level, though like-for-like sales growth missed expectations, sending shares tumbling down 12% on Friday.
Revenue for the quarter reached DKK 7.08 billion, representing 8% organic growth. Retail like-for-like sales grew 3%, short of the 4.3% consensus.
EBIT came in at DKK 1.29 billion, for a margin of 18.2%, about 1% below consensus, while net profit was DKK 803 million. Margins nevertheless beat expectations, supported by efficiencies.
In terms of regional trends, the U.S. remained strong with 12% organic growth, while Australia and Other Markets grew 18% and 13%, respectively. In contrast, Europe was softer, with the U.K. down 5%, Italy 7%, and France 2%.
Pandora reaffirmed its full-year 2025 guidance for organic revenue growth of 7-8%, underpinned by like-for-like growth of 4-5%, network expansion of about 3%, and forward integration of around 1%.
“We think c.100bps of LFL miss is due to low inventory for the end-of-season sale, and some tougher comp from the Essence launch last year (product launches this year are geared to end Q3). We note also the comp gets materially easier into the back end of the quarter,” said analysts at Jefferies.
Local currency growth is projected at 8–9%. The EBIT margin forecast was adjusted to around 24% (from about 24.5%) to reflect headwinds from commodities, foreign exchange, and tariffs, together representing a 280-basis-point drag versus 2024.
The Danish jewelry company outlined two tariff scenarios. If current rates remain, Pandora expects a DKK 250 million impact in 2025 and about DKK 300 million annually thereafter.
If higher tariffs resume, including 37% on imports from Thailand and 145% on imports from China, the hit could be as much as DKK 500 million in 2025 and DKK 900 million annually.
“We are conscious that this update will crystallise downgrades to a mixed consensus (eg some sellside had assumed only a temporary hit from tariffs), even if the buyside should be very much aware of the magnitude of these downgrades given previous disclosure,” Jefferies added.
In April, Pandora had warned the impact could reach DKK 1.2 billion annually before mitigation, though direct shipping to Canada and Latin America from 2026 is expected to reduce the burden.
Currency movements also weighed on guidance, with a weaker U.S. dollar and depreciation in the Australian dollar, British pound, Turkish lira, and Mexican peso partly offset by a weaker Thai baht.
Pandora said price adjustments and operational efficiencies should help counteract inflationary pressures, including higher salaries.
Other guidance includes plans to open a net 50 to 75 concept stores in 2025, offset by at least 50 net closures in China, and about 25 Pandora-owned shop-in-shops.
Capital expenditure is expected at roughly 7% of revenue. The effective tax rate is forecast at about 24%, slightly lower than recent years following a bilateral advance pricing arrangement between Danish and Australian tax authorities.
Net financial expenses are now projected at DKK 900-950 million, down from prior guidance of DKK 1-1.05 billion, on foreign exchange adjustments.
“We view the equity setup as fairly balanced for now, given potential for softening demand trends and further margin pressure, offset by strong FCF generation and shareholder distributions,” said analysts at RBC Capital Markets in a note.
“With reset of company margin targets and consensus expectations now more reasonable, we also view earnings downside risk as more contained,” RBC added.