Pandora reports strong Q2 despite economic headwinds

In the second quarter of 2025, Pandora delivered strong revenue growth and healthy margins, navigating a turbulent global economy marked by currency fluctuations, tariffs, and rising commodity prices. The company reported 8 percent organic growth to 7,075 million Danish krone for the quarter, with a 3 percent increase in like-for-like sales and a 5 percent boost from network expansion.

While some European markets faced challenges, the continent as a whole saw a 1 percent like-for-like increase, driven by double-digit growth in countries like Spain, Portugal, and Poland. The U.S. market remained a strong performer, with 8 percent like-for-like growth.

Pandora's gross margin stayed strong at 79.3 percent, even with a 170-basis-point headwind from foreign exchange, tariffs, and commodity costs. The company's EBIT margin landed at 18.2 percent, but would have been 19.4 percent in constant currency, indicating the significant impact of external economic pressures. Despite these challenges, Pandora’s earnings per share (EPS) grew by 6 percent, or 18 percent in constant currency.

Looking ahead, Pandora is continuing to execute its "Phoenix" strategy, focusing on its brand, design, markets, and personalisation. The second half of 2025 will see the launch of two new collections—Pandora Talisman and Minis—to refresh its core charm offerings and reinforce its affordability. The company is also preparing a new "Be Love" holiday marketing campaign to deepen its emotional connection with consumers through storytelling.

The company has maintained its 2025 guidance of 7-8 percent organic growth and an EBIT margin of "around 24 percent," even with the impact of current tariffs. While July trading saw a slight dip in like-for-like growth due to a weak end-of-season sale and the timing of new product launches, President and CEO Alexander Lacik expressed confidence. "In these turbulent times, we are satisfied with yet another quarter of high single-digit organic growth and strong profitability," he stated, attributing the success to the brand's appeal and global presence. He affirmed that an exciting product pipeline and new marketing campaigns will help the company meet its targets for the year.