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Pandora has lowered its outlook for 2025 as challenging conditions in the consumer market weighed on sales in the third quarter.
The Danish jeweler observed a “turbulent macroeconomic backdrop,” even as revenue increased in the three months that ended September 30, it said Wednesday. Tariffs and other external factors also impacted profitability, the company noted.
The charm retailer now expects full-year like-for-like sales to advance 3% to 4%, compared with an earlier forecast of 4% to 5%. It maintained its projection of 7% to 8% organic growth for the year.
This follows a 2.7% year-on-year increase in global revenue to DKK 6.27 billion ($964.2 million) for the quarter on a reported basis, with strength in the US outweighing ongoing weakness in China.
Sales rose 6% on an organic basis — which represents sales in local currencies after adjusting for changes to the company’s structure — and increased 2% on a like-for-like basis.
Slowdowns in the key European markets of Germany, the UK, Italy and France dragged down these totals.
Sales of lab-grown diamonds, a very small segment for the company, jumped 17% to DKK 75 million ($11.5 million).
Meanwhile, group earnings before interest and taxes (EBIT) — also called operating profit — fell 10% year on year to DKK 880 million ($135.4 million), with the EBIT margin also declining. This reflected unfavorable fluctuations in foreign-exchange rates, an increase in commodity prices, and the US import duties, Pandora explained. Net profit slipped 18% to DKK 489 million ($75.2 million).
“Despite the macroeconomic challenges to top and bottom line, we are confident that we will deliver on our targets for the year, driven by an exciting product pipeline, new marketing campaigns and operational agility,” said Pandora president and CEO Alexander Lacik.
Pandora’s share price was down around 4% in early trading Wednesday.
Image: A Pandora store in Thailand. (Shutterstock)
