Pandora Shines with 6% Revenue Growth Amidst Global Economic Headwinds

Danish jewellery brand Pandora has announced a resilient performance in the third quarter of its 2025 financial year, achieving a 6% organic revenue growth despite a challenging global macroeconomic environment. This growth was attributed to a 2% increase in like-for-like sales combined with a significant 4% contribution from network expansion, as detailed in the company’s latest Interim Report.

Delving deeper into the financial figures, Pandora reported a gross margin of 79.3% for the third quarter, a slight decrease from 80.1% in the same period of its 2024 financial year. The report highlighted that foreign exchange fluctuations, commodity price movements, and tariffs collectively presented 280 basis points of headwinds. Geographically, performance varied, with the US market demonstrating stronger results compared to Europe as a whole. Notably, key growth markets including Spain, Canada, Poland, Portugal, and Japan all recorded impressive double-digit like-for-like growth during the recent quarter.

Pandora's profitability metrics remained largely in line with expectations. The EBIT (earnings before interest and tax) margin for Q3 2025 stood at 14.0%, marking a decline of 210 basis points year-on-year. Furthermore, earnings per share (EPS) growth saw a 14% drop, though it increased by 5% in constant currency terms, aligning with the business's projections.

Commenting on the results, Pandora's President and CEO Alexander Lacik stated in the Interim Report, "We continue our growth journey and delivered sound performance in a quarter marked by the challenging macroeconomic environment." He further emphasized the company’s strategic focus: "We are intensifying our efforts to drive brand heat, and the initial response to our new product launches demonstrates how we can continue to unlock market potential with our combination of innovation, affordability and emotional storytelling. We are well-geared for the upcoming holiday period and set to reach our targets for the year."

During the third quarter, Pandora continued its strategic network expansion, opening 11 new concept stores and eight Pandora-operated shop-in-shops. The business underscored that its sustained network expansion efforts over the past 12 months have played a crucial role in driving topline growth, contributing an incremental 5% to organic revenue impact in the latest quarter.

Looking ahead, Pandora is set to continue expanding its store network, although it has revised its guidance for the 2025 financial year. The company now anticipates approximately net 25 new concept stores, a adjustment from its previous forecast of 25 to 50. This revised plan includes the closure of up to 100 concept stores in China, an initiative aimed at optimizing financial performance which is expected to have only a minimal effect on overall organic growth. Additionally, Pandora plans to launch around 25 company-operated shop-in-shops this year and implement its new store concept across various locations.