The strategy of the mythical animal that rises from the ashes, Phoenix, seems magical for Pandora. In the first quarter of 2025, the Danish jewelry group’s organic growth stood at 7%, composed of a 6% Like-for-Like increase (at unchanged parameters) and a 4% network expansion, partially offset, as expected, by the timing of sales (sell-in) and other revenue components. These data suggest that the 4% network expansion contributed 1% of revenues.
Growth in the United States accelerated to 11%, always at unchanged parameters, while the four main European markets considered separately showed a slight decline of 2%. The rest of the markets saw growth of 8%. Overall, growth in Europe was 4%, driven by double digits in several countries, including mature markets such as Spain and Portugal. Gross margin continued to strengthen, reaching 80.4%, up 11% year-on-year, despite negative pressures related to raw materials, thanks to the pricing strategy, operational efficiency gains and a lower incidence of downstream integration.
Regarding profitability, the EBIT margin in the first quarter stood at 22.3%, up 30 basis points compared to the previous year. Debt remains low, with a Nibd/EBITDA ratio of 1.4x. In early February, Pandora initiated a new share buyback program worth DKK 4.0 billion. These dynamics contributed to an earnings per share (EPS) growth of 19% in the first quarter of 2025.
The Phoenix Strategy
The Phoenix Strategy envisages strengthening Pandora’s leadership in the accessible jewelry segment. The company intends to continue investing to stimulate growth through brand amplification and an innovative product portfolio.
In February 2025, Pandora launched the second phase of its Be Love marketing campaign, aiming to redefine the perception of the brand as a 360-degree jewelry brand. The results are already visible in the numbers: in the first quarter, Like-for-Like growth was 2% in the Core segment and 12% in the Fuel with more segment. Pandora’s new e-commerce platform has had a positive start, with sustained metrics and a favorable impact on the main brand Key Performance Indicators. However, recent developments in exchange rates and commodity prices (gold skyrocketing) have generated further negative pressures of 0.7% since the beginning of January 2025. Pandora therefore currently expects an Ebit margin of around 25% for 2026, net of any duties, and organic growth of between 7% and 8% for fiscal year 2025, despite the high degree of macroeconomic uncertainty. As long as US tariffs are not further raised after the “pause”.
We are pleased with the start of the year, especially considering the high volatility of the global context. We cannot control external factors, but we can control the execution of a proven strategy that is growing our business. Remaining agile with respect to the context does not change our strategic and long-term vision to make Pandora the reference destination for quality branded jewelry.
Alexander Lacik, President and CEO of Pandora
