Pandora plans to up prices on its jewelry to offset the costs of rerouting much of its supply chain amid current and potential further tariffs.
The Danish jeweler imports many of its products to the US from countries including Thailand, China, Vietnam and India, it said Tuesday. The company has been working on mitigating measures for a while in anticipation of elevated tariffs, such as switching sources of supply for point-of-sales materials used in the US, as well as shipping jewelry directly to Canada and Latin America rather than through its US distribution center. However, the restructuring will still affect business.
Should the current tariff levels remain in place — 10% on Thailand and 145% on China — Pandora will note a financial impact of DKK 250 million ($38.1 million) this year and a hit of DKK 300 million ($45.7 million) each year thereafter, it explained. If taxes are raised to the levels announced prior to US President Donald Trump’s 90-day pause — 37% on Thailand while China will remain at 145% — the impact on Pandora will come to DKK 500 million ($76.1 million) for 2025 and DKK 900 million ($137.1 million) from 2026 onward.
“In both scenarios, Pandora will consider further price increases,” the company said. “The extent and timing of further price increases will be determined based on the concrete circumstances.”
Pandora is also planning to close a number of stores in China during the year, it noted. In the first quarter, which ended March 31, it shut 10 stores and expects to terminate an additional 40 by the end of 2025. The move is part of a “strategic network optimization effort” in the country to close lower-performing locations. Meanwhile, the jeweler plans to expand the rest of its network in other countries, opening a net 50 to 75 locations this year and 400 to 500 stores by the end of 2026.
Revenue for the three months grew 8% year on year to DKK 7.35 billion ($1.12 billion), rising 7% on an organic basis — a similar metric to comparable-store sales. The increase is the result of 6% like-for-like growth overall as well as a 4% expansion of its store network, it said. A gain of 43% on a like-for-like basis in the company’s synthetic-diamond collection as well as a strong performance across the Valentine’s Day holiday also buoyed sales. Profit for the period rose 14% to DKK 1.1 billion ($167.6 million).
The company has maintained its guidance for the full year of revenue growth of 7% to 8% on an organic basis, it said.
Image: A Pandora gift box and charm. (Shutterstock)
