On 12 August, Danish accessible luxury jewellery company Pandora released its results for the second quarter of fiscal 2026 ended 30 June. Second-quarter revenue reached DKK 7.219 billion (approximately USD 1.13 billion), representing organic growth of 3% year-on-year, of which like-for-like (LFL) sales contributed 1% growth and network expansion and other factors contributed 2%.
For the first half of the year, revenue rose organically by 2% year-on-year to DKK 14.328 billion (approximately USD 2.24 billion), while LFL sales were flat compared with the same period last fiscal year.
In the second quarter, LFL sales in Asia Pacific continued to grow strongly, rising 10%, primarily driven by Japan.
Gross margin stood at 80.5%. A one-off benefit from tariff refunds contributed 230 basis points. Excluding this factor, gross margin remained solid at 78.2%, down 110 basis points year-on-year. Ongoing external headwinds from tariffs, commodities and foreign exchange had a combined negative impact of 270 basis points, with operational efficiencies and disciplined promotional activity offsetting most of the pressure.
Second-quarter earnings before interest and tax (EBIT) reached DKK 1.463 billion (approximately USD 229 million), with an EBIT margin of 20.3%, up 210 basis points year-on-year. The one-off benefit from tariff refunds contributed 250 basis points. Excluding this factor, the EBIT margin was broadly flat year-on-year despite 300 basis points of external pressure.
The day after the results were released, Pandora shares closed at DKK 837.2 per share on 13 August, up approximately 8.5% from the previous trading day. The share price has fallen approximately 21% over the past year. Its latest market capitalisation stood at approximately DKK 58.7 billion (approximately USD 9.17 billion).
Pandora is taking corrective action on execution across parts of its business, including sharpening its focus on design as a core driver of brand desirability, evolving its marketing model to strengthen local and cultural relevance, and tailoring growth strategies to individual markets.
The new spring-themed seasonal collection, “Garden of Dreams”, uses nature-inspired motifs to bring Pandora’s design-led brand narrative to life. Supporting marketing campaigns and increased investment in in-store visual merchandising helped drive growth in the Timeless collection.
In July, Pandora launched Pandora Wonders, a new long-term creative platform designed to enhance brand desirability and cultural relevance through distinctive design, craftsmanship and fresh interpretations of iconic jewellery materials. During Paris Haute Couture Week, Pandora unveiled the platform’s first collection, co-created with stylist Harry Lambert, generating significant buzz around the brand.
Following more than a year of product development and consumer testing, Pandora launched a small-scale pilot of platinum-plated jewellery in the Netherlands in July. The next phase will expand testing to selected styles across multiple markets in the fourth quarter of 2026, with a phased roll-out at scale planned from 2027.
By region:
- North America recorded a 1% year-on-year decline in LFL sales in the second quarter. Weak local consumer sentiment continued to weigh on store traffic, while strong store operations helped the brand navigate the trend. LFL sales in the US were flat year-on-year.
- Europe, the Middle East and Africa (EMEA) recorded a 2% year-on-year decline in LFL sales in the second quarter. Spain, Poland and Portugal maintained strong growth, but this was offset by continued weakness in Italy and the UK, although the UK showed some sequential improvement.
- Asia Pacific recorded 10% year-on-year growth in LFL sales in the second quarter, primarily driven by strong growth in Japan. Pandora remains at an early stage of brand building in Japan and is expanding its presence through increased marketing investment and a marketing model designed to balance visibility with brand relevance.
- Latin America recorded 18% year-on-year growth in LFL sales in the second quarter. Growth was primarily driven by a new go-to-market model implemented across the region in the first quarter, including broad-based pricing adjustments, alongside the roll-out of Pandora’s upgraded marketing approach.
By segment:
- The Core charms business recorded a 1% year-on-year decline in LFL sales in the second quarter;
- The Fuel with More business recorded 6% year-on-year growth in LFL sales.
In the second quarter of 2026, Pandora continued to expand and optimise its store network in line with plan, with a net addition of 15 concept stores and a net closure of two owned shop-in-shops, in line with expectations. Over the past 12 months, Pandora has added a net 23 concept stores while closing a net 95 stores in China. It also recorded a net closure of 17 owned shop-in-shops, including a combined net closure of 47 in Brazil and China. New store openings were broadly distributed across North America, EMEA and Asia Pacific excluding China.
Pandora will continue to expand its store network, targeting a net addition of 50-75 concept stores, while planning to close approximately another 25 concept stores in China. At the same time, the company expects a net closure of 25-50 owned shop-in-shops, including approximately 50 closures across Brazil and China combined. Pandora said that store closures in China and Brazil are expected to have a limited impact on organic growth. Overall, network expansion is expected to contribute approximately 3% to organic growth in fiscal 2026, compared with the previous forecast of 2%.
Pandora President and CEO Berta de Pablos-Barbier said that “We are making progress in re-energising Pandora’s growth engine. We delivered 1% like-for-like growth in the second quarter, and the initiatives we have implemented are showing early positive signs. There is still a lot of work ahead, but we are moving in the right direction, and we are therefore raising our growth and profitability targets for 2026.”
Pandora raised its full-year 2026 guidance:
- Full-year revenue is expected to record organic growth of 0-3%, compared with the previous guidance of -1% to 2%;
- EBIT margin is expected to reach 22-23%, compared with the previous guidance of 21-22%.
Note: At time of writing DKK 1 = approximately USD 0.156
| Source: Official financial report
| Image Credit: Official financial report
| Editor: Luxeplace
