Pandora reports 2 percent organic growth amid strategic transition

Danish jewellery brand Pandora has reported organic growth of 2 percent for the first quarter of 2026, a result comprised of flat like-for-like (LFL) growth and a 2 percent contribution from network expansion.

Despite significant external headwinds, the group maintained solid profitability. Performance varied across geographical regions, with LFL growth in North America ending at -2 percent as consumer sentiment weakened.

The EMEA region also recorded a 2 percent decline in LFL sales. Conversely, Asia-Pacific and Latin America demonstrated resilience, delivering growth of 12 percent and 6 percent respectively.

Margin compression reflects commodity and currency pressures

The gross margin for the first quarter ended at 79.5 percent, representing a decrease of 90 percentage points year-over-year (YoY). Efficiencies and other internal measures partially offset the impact of tariffs, commodity price fluctuations, and foreign exchange movements.

Operating profit (EBIT) margin landed at 20.9 percent for the period, compared to 22.3 percent in the first quarter of 2025. This result was achieved despite facing 440 percentage points of external headwinds.

Within product segments, LFL growth in the Core collection was -1 percent, though this was mitigated by strong performance in the Talisman range. The Fuel with More segment delivered 1 percent LFL growth, supported by the Timeless collection.

Guidance maintained for full year 2026

The group has confirmed its financial guidance for the full year 2026, forecasting organic growth between -1 percent and 2 percent with an EBIT margin of 21 percent to 22 percent. Management remains mindful of the current geopolitical environment and elevated economic uncertainty.

Current trading in the second quarter of 2026 indicates LFL growth is remaining approximately flat. Pandora president and chief executive officer, Berta de Pablos-Barbier, noted that the quarterly results aligned with internal expectations.

“We are advancing our initiatives to re-energise Pandora’s growth engine,” de Pablos-Barbier stated. “At the same time, we are expanding into new materials, positioning Pandora as a multi-material jewellery brand over time. We remain focused on executing our strategic plans despite the uncertain economic and geopolitical backdrop.”