Editor’s note: This story was updated at 1 p.m. EST.
PARIS — Pandora is shifting gears as it looks to reaccelerate after a first quarter where it held up despite weakness in North America and Europe coming on top of strong headwinds.
On Wednesday, executives underlined that 2026 is a “transition year” during which it is shifting gears on “design, brand and market,” as president and chief executive officer Berta de Pablos-Barbier said during an analyst call after Wednesday’s results.
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The jewelry giant reported revenues slipped 3.3 percent in the first quarter to 7.11 billion Danish kroner, or 951.3 million euros, dented by “lower consumer sentiment in North America” and weakness in Europe.
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In organic terms, it amounted to a 2 percent gain thanks largely to network expansion and other factors. Like-for-like growth was flat, and the EBIT margin eased to 20.9 percent from 22.3 percent amid “significant external headwinds” related to tariffs, commodities and foreign exchange rates.
The company’s 2026 guidance remains unchanged — an organic revenue goal of a decline of between 1 and 2 percent — and an EBIT margin between 21 and 22 percent.
Operating profits declined 9.3 percent to 1.48 billion kroner, or 199 million euros, but gross margin remained at 79.5 percent despite tariffs, foreign exchange and commodities pressure.
Like-for-like revenues in EMEA declined 2 percent, while Latin America advanced 6 percent and Asia-Pacific 12 percent, Pandora said. Japan was a main contributor for the latter, thanks to a 120 percent leap, while tighter distributor management from its recently opened Singapore hub is also yielding early results.
Asked about the U.S., de Pablos-Barbier tied softness to the K‑shaped economy. “What we see is that consumer sentiment is disproportionately degrading with the middle and the lower income,” with the jeweler “over-indexed on middle income.”
The result is a decrease in foot traffic, although conversion and average basket remain “pretty much stable,” and the CEO said the company would continue to invest in the market.
Current trading for the second quarter “shows around flat [like-for-like] growth,” Pandora said.
Chief financial officer Anders Boyer told analysts the key message was that Pandora “continue[s] to manage the quite significant external headwinds in an effective way…[its] core P&L, balance sheet and cash metrics remained healthy in [the first quarter].”
He pointed out that the transition from silver to platinum‑plated jewelry is central to lessening the company’s metals exposure, with Boyer stressing that “with this transition, Pandora will remain a structural high margin company.”
In a research note, RBC Capital markets said the revenues came 1 percent ahead of consensus, gross profit 4 percent ahead, and EBIT 17 percent ahead “which should be well received by the market.”
Indeed, shares rose steadily rose throughout the day, up 13.7 percent to 565.80 Danish kroner in late-afternoon trading.
De Pablos-Barbier said the company had a “solid start” to the year, with first-quarter results hitting the upper range of its guidance.
Despite an uncertain external environment, including increasing geopolitical volatility, maintaining the year’s initial guidance was “appropriate,” she continued. “At the same time, we do see the need to step up execution across a few areas.”
In its quest to kickstart growth, the CEO said a top priority was to “energize” its jewelry lines, noting the appointment of chief product officer Philippa Newman in February.
Pandora is looking beyond “the relative narrow aesthetic space in the market” where a large share of its business, particularly its core charms offer, currently sits. What de Pablos-Barbier described as “underrepresented aesthetics” deliver “a disproportionate share of incremental growth” when invested in, a direction she intends on capitalizing on.
It cited its collaboration with the hit Netflix series “Bridgerton,” which debuted in February, as an example. “Though limited in scale, [it] exemplifies this approach with clear product differentiation, which generates brand buzz,” Pandora said.
Cue the launch of Pandora Wonders, “a multiyear platform to elevate desirability and drive demand through a step change in creative expression.”
Each year the jeweler will partner with a “leading creative voice” on limited-edition capsules, starting with a “playful reinterpretation of the organic pearl” using an artisanal micro‑piercing technique of the gemstone. This also plays into the brand’s lessening focus on silver, she said.
Growth is also expected from a mix of its revamped product offering, which includes the transition to platinum-plated jewelry at scale from 2027, which will shift roughly 80 percent away from silver.
Plated products currently account for a quarter of sales, de Pablos-Barbier said.
In diamonds, the opportunity lies with micro-fine lab-grown diamond jewels, with a sweet spot around $250, rather than larger carat weights. The jeweler will refocus on items in the $250-to-$500 range, where the CEO said “like-for-like is positive in both value and units.”
In terms of marketing, “investments are being reallocated toward social media and earned media driven activations,” it added.
As previously reported by WWD, the brand has also introduced carbon footprint labeling for its lab-grown diamonds.
— With contributions from Lily Templeton