Pandora profits fall despite revenue increase

Pandora has reported a fall in quarterly profits despite higher revenue, as rising costs and currency headwinds offset continued sales growth across key markets.

For the three months to September 2025, the jewellery group posted revenue of DKK 6.27bn (£740m), up from DKK 6.1bn (£720m) a year earlier, representing 6% organic growth. 

However, operating profit (EBIT) declined to DKK 880m (£104m) from DKK 980m (£115.8m) in the same period last year, reflecting margin pressure from higher commodity costs, tariffs and foreign exchange movements.

Pandora’s EBIT margin stood at 14%, down from 16.1% in 2024, while reported earnings per share fell 14% year on year (up 5% at constant currency). 

The company said gross margin remained strong at 79.3%, compared with 80.1% last year, despite a 280-basis-point impact from cost headwinds.

Pandora’s revenue growth comprised 2% like-for-like sales and 4% from network expansion. Like-for-like growth in the US and the rest of the world was up 6% to DKK 1.89bn (£220m) and DKK 2.34bn (£280m) respectively.

Meanwhile Europe declined by 1% due to softer results in a handful of major markets, partly offset by gains in Spain, Portugal and Poland.

UK performance was broadly in line with the previous quarter, delivering a LFL decline of 8% in Q3 to DKK 685m (£80.9m), reflecting in part the continued soft macroeconomic environment, a competitive landscape, and the timing of media spend ahead of Q4. 

The company said it continued to invest behind its “Phoenix” strategy, which aims to strengthen brand engagement through creative innovation, marketing and in-store execution. 

Two new sub-collections, including the Pandora Talisman and Pandora Minis, were launched late in the quarter and have seen an “encouraging” response.

Looking ahead, Pandora said it would deepen its focus on affordability and local cultural relevance as part of its effort to sustain growth and protect margins. 

It also updated its 2026 EBIT margin target from “at least 24%” to “around 23%”, citing ongoing foreign exchange and commodity cost headwinds.

The company maintained its 2025 guidance of 7–8% organic growth and an EBIT margin of around 24%. 

Like-for-like growth is now expected to be 3–4%, with network expansion contributing about 4%. Pandora said October like-for-like sales grew 4%.

Alexander Lacik, chief executive, said: “We continue our growth journey and delivered sound performance in a quarter marked by a challenging macroeconomic environment. The initial response to our new product launches demonstrates how we can unlock market potential with our combination of innovation, affordability and emotional storytelling.”