Editor’s Note
This article discusses a recent downturn in Pandora’s stock following the company’s revised sales forecast for 2025, highlighting challenges in a key market segment.
Pandora’s stock fell 10% on Friday after the Danish jewelry brand issued a warning about lower sales growth for 2025.
This decline was attributed to U.S. consumers buying fewer charm bracelets and necklaces than expected during the crucial Christmas shopping period, according to a Reuters report.
Pandora, the famous jewelry retailer specializing in silver charm bracelets starting at $70, is currently facing significant headwinds for its business.
The company, which also produces lab-grown diamond jewelry in its own factories in Thailand, faces a triple threat to its financial performance.
First, a crucial segment of its customer base — low-income buyers — is tightening discretionary spending, directly impacting sales volumes.
Second, Pandora must contend with the financial burden imposed by existing U.S. tariffs on imported goods, which increases the cost of getting products to the critical U.S. market.
Most dramatically, the cost of its main raw material has skyrocketed; silver prices saw a substantial increase of 161% last year.
This rapid rise in silver costs directly pressures Pandora’s profit margins, forcing the company to balance its customers’ financial accessibility with rising production costs.
Berta de Pablos-Barbier, who became CEO of Pandora on January 1, stated that the U.S. market is primarily experiencing a decline in traffic compared to what the company saw in previous seasons.
The United States represents Pandora’s largest single market, accounting for about 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 United States have a disproportionate impact on Pandora’s financial performance.
A particularly crucial element of this dynamic is the holiday season. Gift-giving during major holidays is a key driver of sales, leading to a significant revenue spike in the fourth quarter.
Therefore, the success of Pandora’s performance during this gift-giving period is essential to its annual results, making the U.S. market a central point for its marketing and inventory strategies.
Pandora’s stock fell 10% to its lowest level since June 2023, following a preliminary announcement of 2025 results.
The company revised down its forecast for annual organic sales growth to 6%, down from its previous forecast of 7% to 8%. Pandora is expected to publish its full fourth-quarter results on February 5.
The company plans to focus on introducing new product ranges as a strategy to attract hesitant consumers to stores, according to De Pablos-Barbier, Pandora’s former marketing director.
Pandora forecasts an annual operating profit of about 7.8 billion Danish kroner ($1.2 billion).
The company also expects an operating margin of about 24%, which aligns with its previous forecasts.
According to de Pablos-Barbier, the high price of silver has served as a beneficial catalyst, prompting Pandora to develop new materials and designs.
Next month, Pandora is preparing to 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.