By Helen Reid and Isabelle Yr Carlsson
COPENHAGEN (Reuters) – Jewellery maker Pandora said on Wednesday that its growth and profit margin this year would be lower than last, forecasting sluggish European demand but stronger consumer sentiment in its biggest market, the United States.
“It’s a stronger consumer demand and sentiment in the U.S. than we see in Europe, and one would probably think that that’s going to continue into this year,” Pandora CEO Alexander Lacik told Reuters after the Danish company’s fourth-quarter results.
Pandora, known for its charm bracelets, posted operating profit in line with expectations for the key holiday shopping quarter, but said Black Friday discounts had driven a bigger share of sales, weighing slightly on profitability.
Shares in the world’s biggest jewellery company by volume were down by 2% in a flat market after it said it forecast 7%-8% organic growth in 2025. Organic growth for 2024 was 13%, exceeding its guidance of 11%-12%.
Pandora, which sold 113 million pieces of jewellery last year, reported fourth-quarter comparable sales growth of 9% in the U.S., which accounted for 31% of its 2024 revenue.
Meanwhile, Germany’s comparable sales grew by 28%, slower than the 42% growth in the third quarter. Revenues fell in both France and Italy, which Pandora said were impacted by economic challenges and an “intense promotional environment”.
Pandora’s fourth-quarter operating profit rose to 4.15 billion Danish crowns ($578.49 million) from a year-earlier 3.67 billion, against a mean forecast of 4.10 billion in an analyst poll provided by the company. Its operating profit margin was 34.7%, slightly above analysts’ average forecast.
Pandora expects an operating profit margin of around 24.5% in 2025, down from 25.2% last year.
Having warned in November that soaring silver prices could hit its 2026 operating profit margin target, Pandora on Wednesday confirmed its 26%-27% margin goal by 2026, but said it was currently expecting to hit the low end of the range.
A 5% price increase in October, with further hikes planned this year and next, along with cost-cutting, will help Pandora hit that goal, Lacik said in the interview.
Pandora is also closing 50 concept stores in China, where its revenues have dropped sharply since the pandemic due to weak consumer demand and increased competition from Chinese brands.
The company also launched a new share buy-back programme for up to 4 billion Danish crowns.
($1 = 7.1739 Danish crowns)
(Reporting by Isabelle Yr Carlsson and Helen Reid; Editing by Anna Ringstrom, Louise Heavens and Alexander Smith)
