Pandora has revealed that it has lowered its EBIT margin guidance for the full year to “around 24%”, down from 24.5%.
The retailer cited currency fluctuations and ongoing uncertainties around US trade tariffs as key factors behind the reduction in its margin expectations.
Despite this, the company saw its sales in the US grow 11% in Q1, making it its strongest market. Overall, revenue in North America accounted for 32% of Pandora’s total sales.
The Danish retailer posted revenues of DKK 7.3bn (£832m) in Q1, and organic growth of 7%, it also saw its operating profit increase 9%.
Pandora has already faced pressure as a result of Donald Trump placing a 37% tariff on imports from Thailand, which is currently temporarily paused. Pandora manufactures its signature charm bracelets and necklaces in the country.
CEO Alexander Lacik stated that any further escalation on tariffs could force Pandora to reassess its strategy.
The company is already planning to shift some of its production logistics, with the company aiming to ship directly to Canada and Latin America by 2026, bypassing its current U.S. warehouse operations.
Alongside this, Pandora has already implemented price increases this year, following a 5% increase in October 2024 and an additional 4% in April. Furthermore, Pandora has not ruled out further price adjustments if tariffs increase again.
Lasik said: “We are pleased with how we’ve started the year, especially given the very high volatility in the world around us. We do not control the external factors, but we do control how we execute on an already proven strategy that is growing our business. As we remain agile to the environment around us, there’s no change in our strategic plans and long-term vision for making Pandora the go-to destination for high quality, branded jewellery.”
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