Danish jewelry maker Pandora reported robust Q2 2025 results, with organic sales rising 8% despite currency fluctuations, tariffs, and higher raw material costs. The U.S. market grew 8%, while Europe eked out a 1% gain despite weakness in four core markets. Revenue climbed to 7.08 billion Danish kroner (up from 6.77 billion), with EPS increasing 6% to 10.3 kroner. However, profitability took a hit: the EBIT margin fell 160 basis points to 18.2%, pressured by external factors equivalent to 230 basis points. CEO Alexander Lacik reaffirmed ambitious targets, aiming for a 25% EBIT margin by 2026 (24% under current tariffs).
Strategic Shifts to Counter Challenges
New collections like Talisman and Minis, launching in Q3, aim to revitalize core charm sales while offering affordable options. Despite a sluggish July (2% growth), Pandora maintains its 2025 guidance of 7–8% organic growth and a 24% margin. However, U.S. tariffs pose a significant risk—potentially slashing profits by 500 million kroner in 2025, with annual impacts reaching 900 million if rates spike. The company plans to offset pressures through store expansions (50–75 net openings) and holiday campaigns, underscoring confidence in its Phoenix strategy despite macroeconomic uncertainties.
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