Pandora Sales Sparkle But World’s Biggest Jeweler Cautions Over 2025

The world’s largest jewelry maker, Danish-based Pandora, has reported what it called an “outstanding year” for the business, bolstered by its performance in the U.S.

However, despite stellar sales in the North America market, the company also warned that the challenging economic climate and the increasing cost of raw materials could see more sluggish growth in 2025, forecasting lagging European demand but stronger consumer sentiment in its biggest market, the United States.

Organic growth was 13% for its financial year 2024, above its already-upgraded guidance of 11-12%, with 7% like-for-like sales growth and a 5% uplift through network expansion, with 236 net new stores opened globally in 2024, Pandora said.

Revenue and earnings before interest and tax both grew by 13% to reach $4.44 billion and $1.12 billion respectively but it was sales in the U.S., which account for just over 30% of total sales at Pandora, which saw the strongest uplift as they grew 9% in the fourth quarter.

Europe, which makes up another third, saw flat growth, while combined sales elsewhere saw growth of 11%.

Meanwhile, Germany’s comparable sales grew by 28%, slower than the 42% growth achieved in the third quarter. Revenues fell in both France and Italy, which Pandora said were impacted by economic challenges and an “intense promotional environment”.

Pandora U.S. Sales Boost

“It’s a stronger consumer demand and sentiment in the U.S. than we see in Europe, and one would probably think that that’s going to continue into this year,” Alexander Lacik, chief executive of Pandora, said. “We are pleased with how we ended 2024, particularly given the challenging macroeconomic backdrop and a competitive holiday period.

“Execution of our Phoenix strategy continued to drive the brand forward throughout the entire year. In 2025, we target another year of solid and profitable growth and we have all actions lined up to continue the strong development.”

Pandora, which operates with fully recycled silver and gold and which sold 113 million pieces of jewellery last year, has begun the construction of a new $150 million crafting facility in Vietnam, which the firm said will boost its crafting capacity by around half again, create 7,000 jobs and produce up to 60 million pieces of jewellery annually.

Pandora predicted an operating profit margin of around 24.5% in 2025, down from 25.2% last year. The jewellery giant, best known for its charm bracelets, warned in November that soaring silver prices could hit its 2026 operating profit margin target, and the company confirmed its 26%-27% margin goal by 2026, but said it was currently expecting to hit the low end of this range.

Pandora Cuts Cost Base

A 5% price increase in October, with further increases planned this year and next, along with a raft of cost-cutting measures, should help Pandora hit that goal, Lacik said of the company’s strategy.

Pandora is also closing 50 concept stores in China, where its revenues have dropped sharply since the pandemic due to weak consumer demand and increased competition from domestic Chinese brands.

Driven in part by buoyant performance in the U.S., Pandora’s share price has risen by over a third in the last year, although the cautionary tone in its latest trading update saw shares soften very slightly in early trading.

Pandora has a stated aim of 7-9% compound annual growth over the 2024-2027 period, driven by its Phoenix strategy, which includes what it dubbed a full ‘restaging’ of the brand and a new e-commerce platform to bolster online sales.