REG-Pandora delivers 7% organic growth in Q1

Pandora A/SAnnouncement

06/05/2025 16:30

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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.”

 DKK million              Q1 2025  Q1 2024  FY 2024  FY 2025 guidance  
 Revenue                  7,347    6,834    31,680                     
 Organic growth           7%       18%      13%      7-8%              
 Like-for-Like, %         6%       11%      7%                         
 Operating profit (EBIT)  1,641    1,507    7,974                      
 EBIT margin, %           22.3%    22.0%    25.2%    Around 24%        

Attachments
*     Pandora Q1 2025 Interim Report Company Announcement_No_944
(https://ml-eu.globenewswire.com/Resource/Download/1ea42f85-56b4-440e-8429-e35a377a623b)
  
*     Pandora Appendix_Company Announcement_No_944
(https://ml-eu.globenewswire.com/Resource/Download/d748501b-22ba-490d-8431-9d59387bf865)