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Gross Margin: Approximately 79.3%, despite 280 basis points of external headwinds.

Like-for-Like Growth: 2% for Q3, with an improvement to 4% in October.

Organic Growth: 6%, driven by 2% like-for-like growth and network expansion.

Return on Capital: 43%.

EPS Growth: Adjusted EPS growth of 5% in the quarter, despite FX headwinds.

EBIT Margin: Unchanged guidance at around 24% for the year.

Store Network Expansion: Targeting around 50 net openings by year-end, with a 4% growth contribution from new stores.

US Market Performance: 6% like-for-like growth.

European Market Performance: Flat at minus 1% like-for-like growth.

Rest of Pandora Performance: 6% like-for-like growth, with strong performance in Spain, Canada, Portugal, and Japan.

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Release Date: November 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Pandora AS (PNDRY) achieved a 6% organic growth in Q3 2025, driven by a 2% like-for-like growth and network expansion.

The company's gross margin remains robust at approximately 80%, despite facing significant external headwinds.

Pandora AS (PNDRY) reported a high return on capital at 43%, indicating strong financial health.

The launch of new collections, such as Talisman and Minis, has been well-received, contributing positively to brand excitement and consumer engagement.

Pandora AS (PNDRY) has successfully increased its expectations for new store performance, raising the growth contribution from new stores to 4% from 3%.

The like-for-like growth guidance has been revised downwards to 3% to 4% from the previous 4% to 5%, reflecting a cautious outlook due to macroeconomic uncertainties.

Pandora AS (PNDRY) faces external headwinds from tariffs, foreign exchange rates, and commodity prices, impacting profitability.

The European market showed mixed results, with overall like-for-like growth flat at minus 1%, and specific challenges in key markets like Germany and France.

The US market experienced a decline in online platform performance, contributing to a softer like-for-like growth of minus 8%.

Pandora AS (PNDRY) anticipates additional EBIT margin headwinds in 2026 due to rising commodity prices, potentially impacting future profitability.

Q: Could you elaborate on the pricing elasticity and the strategy behind increasing the entry price point? A: Alexander Lacik, CEO, stated that the elasticity assumptions remain around minus 1%. The strategy involves not just price adjustments but also innovation, particularly in the Charms subcategory. The introduction of Minis and adjustments in pricing architecture are part of this strategy. The focus is on maintaining the Pandora DNA of affordability and precious metals, with extensive consumer testing to ensure brand fit.

Q: How do you plan to mitigate the margin headwinds from commodity prices in 2027? A: Anders Boyer, CFO, explained that the company aims to mitigate a material part of the 600 basis points headwind from 2025 to 2027 through creative innovation, pricing, leverage, and cost efficiencies. This includes reducing commodity exposure in the P&L and maintaining high margins despite external pressures.

Q: Can you provide insights into the performance and growth strategy in Germany and Mexico? A: Alexander Lacik noted that Germany is expected to grow next year despite tough comps due to previous viral trends. In Mexico, the focus is on addressing high-low pricing strategies and expanding the addressable market, with improvements expected in the coming months.

Q: What is the outlook for store openings and network expansion in 2026? A: Anders Boyer mentioned that while the number of store openings this year is lower, the focus remains on concept stores with high revenue potential. The company is not at the end of its network expansion journey, and future openings will continue to contribute significantly to revenue growth.

Q: How is Pandora utilizing AI in its operations, and what impact does it have on product development and sales? A: Alexander Lacik highlighted that Pandora has been using AI for media buying, customer cohort identification, and design development. The focus is on quality over speed in product development, and the partnership with Salesforce aims to enhance the online sales experience, anticipating more transactions online in the future.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.