Editor’s Note
This article highlights the challenges facing Pandora as shifting consumer demand, particularly in the key U.S. market, prompts a sales warning and a sharp drop in its share price.
Pandora’s stock fell 10% on Friday after the Danish jewelry brand issued a warning about lower sales growth for 2025.
This downturn was attributed to the fact that U.S. consumers bought fewer bracelets and charm necklaces than expected during the crucial holiday shopping period, according to a Reuters report.
Pandora, the well-known jewelry retailer specializing in silver charm bracelets starting at $70, is currently facing significant business obstacles.
The company, which also produces lab-grown diamond jewelry in its private Thai factories, faces a triple threat to its financial performance.
First, a crucial segment of its customer base—low-income shoppers—is tightening discretionary spending, directly affecting sales volumes.
Second, Pandora must face the financial burden imposed by existing U.S. tariffs on imported goods, which increases the cost of bringing products to the critical U.S. market.
Most drastically, the cost of its main raw material has skyrocketed; silver prices experienced a substantial 161% increase last year.
This rapid rise in silver costs directly pressures Pandora’s profit margins, forcing the company to balance affordability for its customers with rising production expenses.
Berta de Pablos-Barbier, who became CEO of Pandora on January 1, stated that the U.S. market is primarily experiencing a decrease in traffic compared to what the company has experienced in previous seasons.
The United States represents Pandora’s largest market, contributing approximately one-third of the company’s total revenue.
This significant dependence on the U.S. consumer base means that market trends and consumer confidence in the U.S. have a disproportionate impact on Pandora’s financial performance.
An especially crucial element of this dynamic is the holiday season. Gift-giving during major holidays is a key factor in sales, leading to a considerable increase in revenue during the fourth quarter.
Therefore, the success of Pandora’s performance during this gift-giving period is vital for its annual results, making the U.S. market a central focus for its marketing and inventory strategies.
Pandora’s stock fell 10% to its lowest point since June 2023 following a preliminary 2025 results announcement.
The company revised its full-year organic sales growth forecast downward to 6%, a decrease from its previous forecast of 7%-8%. Pandora plans to publish its full fourth-quarter results on February 5.
The company plans to focus on introducing more new product lines as a strategy to attract hesitant consumers to stores, according to De Pablos-Barbier, Pandora’s former marketing director.
Pandora projects a full-year operating profit of approximately 7.8 billion Danish kroner ($1.2 billion).
The company also forecasts an operating margin of around 24%, which aligns with its previous forecasts.
According to de Pablos-Barbier, the high price of silver served as a beneficial catalyst, leading Pandora to develop new materials and designs.
Next month, Pandora will announce its strategic priorities for 2026.
This announcement will include updated plans to reduce the company’s dependence on raw materials, a measure aimed at protecting its margins.