Pandora delivers 7% organic growth in Q1

FINANCIAL HIGHLIGHTS

• Pandora continues to execute on the Phoenix strategy, to position Pandora as a full jewellery brand and consistently deliver solid financial results.
• Q1 2025 organic growth ended at 7%. This comprised of Like-for-like (LFL) growth of 6% and network expansion of 4%. This was, as expected, partly offset by phasing of sell-in/other revenue.
• LFL growth in the US accelerated to 11%, the four European markets reported separately declined slightly to -2% and Rest of Pandora remained solid at 8%. Overall LFL in Europe was 4% fuelled by double-digit growth in several countries, including established markets like Spain and Portugal.
• The gross margin continued to strengthen and ended at 80.4%, up 110bp Y/Y despite headwind from commodities, supported by pricing, efficiencies and less headwind from forward integration.
• Q1 2025 EBIT margin landed at 22.3%, up 30bp Y/Y.
• Leverage remains low at NIBD/EBITDA of 1.4x. Early February, Pandora initiated a new DKK 4.0 billion share buyback programme.
• The above-mentioned factors helped contribute to 19% EPS growth in Q1 2025.

PHOENIX STRATEGY HIGHLIGHTS

• Whilst acknowledging the uncertain macroeconomic environment, Pandora will continue to leverage its Phoenix strategy as the leading brand in the accessible jewellery segment with an attractive gifting proposition. Pandora will continue to invest, focusing on driving growth through brand heat supported by an exciting product pipeline.
• In February 2025, Pandora launched a follow-up to its BE LOVE marketing campaign which aims to transform the perception of Pandora into a full jewellery brand. The results continue to be visible in the numbers with LFL growth in the “Core” segment in Q1 of 2% whilst the “Fuel with more” segment drove 12% LFL growth.
• Pandora’s brand-new online platform is off to an encouraging start with solid commercial metrics and an overall positive impact on brand KPIs.
• Pandora is progressing well on actions to offset the increase in commodity prices. However, the recent development in foreign exchange rates and commodity prices provide an additional 70bp headwind since end of January 2025 and Pandora therefore currently expects an EBIT margin of “around 25%” in 2026. This excludes any potential tariff impact.

2025 GUIDANCE AND CURRENT TRADING

• Pandora maintains the guidance for 2025 of “7-8% organic growth” while noting the elevated macro uncertainty. The EBIT margin guidance for 2025 is updated to “around 24%” (previously “around 24.5%”), reflecting mainly the latest foreign exchange headwinds. This excludes potential tariffs beyond the cost during the 90 days pause.
• Pandora is actively preparing for various scenarios related to the US tariffs and will provide an update as the potential impact on the 2025 guidance and 2026 targets becomes clearer.
• Current trading in Q2 2025 shows underlying LFL growth at mid single-digit levels.

Alexander Lacik, President and CEO of Pandora, says:
“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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