Pandora Q3 sales pass $1 billion as guidance moves to the top of its range

Pandora grew organically by 6 percent in the third quarter: like-for-like sales rose 4 percent, and network expansion and other factors added a further 2 percent. Sales reached 6.69 billion Danish kroner over the three months to 30 September, or $1 billion at current exchange rates.

The Danish charm and jewellery maker, founded in 1982 and known for its customisable bracelets, rings and necklaces, sharpened its 2026 guidance toward the top of the bracket it revealed in August. It now expects organic growth of 2 to 3 percent, up from a previous 0 to 3 percent.

The EBIT margin is now guided at between 22.5 and 23 percent. President and chief executive Berta de Pablos-Barbier told WWD that momentum is building and that strategic initiatives are clicking into gear, with consumers responding to new designs and culturally relevant activations.

Like-for-like growth was positive in every region in the quarter, a result de Pablos-Barbier called an encouraging step in a challenging consumer environment. Markets reacted favourably, with Pandora shares closing up almost 11 percent at 919.8 Danish kroner, or $138.3.

Where the growth came from

North America grew 3 percent, while Europe returned to growth with a 1 percent rise after five quarters of contraction. The Middle East and Africa zone added 1 percent and Latin America rose 6 percent. Asia-Pacific delivered the largest increase, a 20 percent leap.

Half of the quarter's overall growth came from Japan alone, a pace de Pablos-Barbier conceded cannot last forever. The country doubled over the year and posted triple-digit growth in the quarter, a result she framed as maximising the bridge while remaining locally relevant.

Pandora's Core category, which holds the charm business and the Talisman range launched last year, grew 1 percent. The Fuel for More segment, spanning newer developments including lab-grown diamond designs, jumped 9 percent. New designs with compelling activations are drawing the strongest response, the CEO said.

The margin decision behind the numbers

Gross margin improved during the quarter, helped by a partial refund of US tariff claims. Results overall beat consensus, except for the EBIT margin, which came in at 15.9 percent. RBC Capital Markets analyst Piral Dadhania noted that this landed 5 percent below consensus estimates.

De Pablos-Barbier said the miss reflected a deliberate choice to take one point of EBIT and reinvest it in the brand, targeting a gap in retail. Stores could be warmer and more immersive, she said, better at helping people choose a style and understand the collections.

Investment in that direction lands next year, backed by tests in Italy and New York where conversion rose. She added there would be no major retail concept change, and that flagship openings such as those in Barcelona and Milan earlier this year remain commercially viable.

October like-for-like sales rose 1 percent, held back by lower promotional activity, though underlying trends remain healthy at around 3 percent. For the fourth quarter the company is encouraged by the third-quarter improvement but is not assuming the recovery follows a straight line.

The consumer environment remains uncertain and geopolitical risks are high, she said, with some initiatives taking time to reach their full potential. The remarks came on an analyst call that doubled as a strategic update ahead of the next Capital Markets Day in 2027.

Platinum and the path ahead

The transition to platinum-plated jewellery is on track to begin its planned rollout in 2027. A test launched in the Netherlands in July has since expanded to the United States, the United Kingdom and Australia, with early results giving the company confidence in consumer acceptance.

Consumers come to Pandora for design and brand rather than grams of metal, de Pablos-Barbier told analysts. Chief financial officer Anders Boyer, who retires after 14 years and is succeeded by Paulo Garcia on 1 December, said the approach would be more measured and without negative financial impact.

Silver is hedged at a lower-than-anticipated price for 2027, and the transition of the relevant silver assortment is expected to accelerate in 2028 and complete by 2029. The opening of Pandora's newest crafting facility in Vietnam in October lifted total capacity to 170 million pieces a year.

De Pablos-Barbier reiterated the importance of design, brand relevance and a differentiated market-by-market approach, the goal being a bigger Pandora that remains unmistakably Pandora. The company is organising its design expansion around four directions: playful, sparkling, bold and delicate.

Playful and sparkling designs currently command about 25 percent of the market. Expanding into bold and delicate would enlarge the playfield to around 65 percent, with a new collection targeting the latter due in 2027. Pandora Voices launched in October with Dame Pat McGrath, and Pandora Wonders, launched in July with stylist Harry Lambert, gets a second chapter next year.

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Images: Courtesy of Pandora; The new Pandora production factility in Vietnam-Singapore Industrial Park III near Ho Chi Minh City Courtesy of Pandora