Pandora A/S

Q2 reported 1% like-for-like growth and 3% organic growth. Gross margin was up 120 basis points year over year, and even excluding the one-off tariff refund it was still above 78% and about 100 basis points below last year despite just under 300 basis points of external headwinds. EBIT margin increased 210 basis points year over year, including a 250 basis-point benefit from the partial refund of the U.S. tariff claim; excluding that one-off, EBIT margin was broadly in line with last year. Full-year guidance was raised: organic growth to 0% to 3% from a prior lower range, like-for-like to -2% to +1%, and EBIT margin to 22% to 23% from 21% to 22%. Management said the 2026 guidance still reflects a weak consumer backdrop and geopolitical uncertainty, but also a promotional detox in the second half and improved network contribution.

Berta de Pablos-Barbier framed 2026 as a deliberate transition year focused on a new growth model built around more distinctive design, cultural relevance, better local execution, and fewer promotions. She said the company is seeing encouraging proof points from initiatives such as Garden of Dreams, Pandora Wonders, and the rollout of platinum-plated jewelry, but stressed these actions are not yet fully reflected in current performance. Her tone was confident but cautious: she repeatedly said Pandora is “not declaring victory,” and that the company is focused on scaling what works while protecting brand desirability and resilience.

Anders Boyer said margins remained solid despite external headwinds, and highlighted the one-off U.S. tariff refund as the main driver of the quarter’s margin uplift. He said gross margin would still have been above 78% excluding the refund, and that the EBIT margin was broadly flat year over year once that one-off is removed, with some cost phasing benefit in Q2 that will reverse in the second half. He also quantified 2026 tariff refund recognition at about 50 basis points of full-year EBIT margin, with another similar 50 basis points expected in the second half, and said the company monetized the tariff claim for $55 million in cash. On capital allocation, he said it is still too early to talk about restarting buybacks, though that could be revisited in the 2027 discussion.

Analysts pressed on the U.S. recovery, the impact of promotions, tariff economics, and the new platinum-plating strategy. Management said U.S. traffic is slightly behind industry, but conversion and average basket are improving, which they see as evidence that the new product and marketing model is working; they also said the market is still weak and accessible jewelry demand remains under pressure. On tariffs, Anders said the new rates imply roughly 70 to 80 basis points of gross-margin upside versus prior assumptions, with Vietnam and Thailand aligned on tariff treatment. On platinum plating, management said the Netherlands pilot is early but has confirmed prior consumer testing, with store products priced at silver levels and online price testing also underway.