Pandora A/S

Q2 revenue growth was 1% like-for-like and 3% organic. Gross margin increased 120 basis points year over year, with Anders Boyer noting that excluding the one-off U.S. tariff refund it was still above 78% and only down around 100 basis points versus last year despite just under 300 basis points of external headwinds. EBIT margin increased 210 basis points year over year; the tariff refund contributed 250 basis points at the EBIT margin level. For the full year, Pandora now expects 0% to 3% organic growth and 22% to 23% EBIT margin, up from prior guidance of 21% to 22%. Management also said the like-for-like guidance is now minus 2% to plus 1%, versus minus 3% to 0% previously, and network expansion is expected to contribute plus 3% to organic growth, offset by around minus 1% from sell-in and other items.

Berta de Pablos-Barbier framed 2026 as a deliberate year of change, centered on a new growth model with more distinctive design, cultural relevance, local execution, and more compelling store experiences. She repeatedly emphasized that Pandora is reducing promotions and heavy discounting to protect brand desirability, even if that tempers near-term growth. Her tone was confident but cautious: she said the proof points are building, but the changes are not yet fully reflected in the business and the larger benefit should show more clearly over time, particularly from 2027.

Anders Boyer said margins remained solid despite external headwinds and highlighted a one-off benefit from the partial refund of the company’s U.S. tariff claim. He said gross margin was up 120 bps in Q2, and even excluding the refund gross margin was still above 78% and only about 100 bps below last year despite nearly 300 bps of external headwinds. He also said EBIT margin was up 210 bps, with 250 bps helped by the tariff refund and around 200 bps of cost phasing benefit in the quarter, much of it from lower marketing spend; that phasing will reverse in Q3 and Q4 and be neutral for the full year. He raised full-year EBIT margin guidance to 22% to 23% because of the tariff refund, and said the company received $55 million in cash from selling the claim, with $28 million booked in Q2 and the rest expected in the second half.

Analysts focused on the improving U.S. business, tariff and 2027 margin sensitivities, the platinum-plating pilot, the rationale for the upgraded guidance, and whether lower promotional activity would slow second-half growth. Management said U.S. traffic remains weak, but conversion and average basket are improving, and that the new product and marketing model is showing proof points; it also cautioned that July strength is not a run rate. On tariffs, Anders said the new 12.5% rate from Thailand versus the prior 19% assumption adds roughly 70 to 80 bps of gross margin upside versus earlier 2027 assumptions, and that Vietnam is not disadvantaged because its tariff level is aligned with Thailand. On platinum plating, Berta said the Netherlands pilot is early but encouraging and is confirming prior consumer testing, with physical-store pricing and online price tests being used to learn before global rollout. Management also said the promo detox will hit mature markets hardest and that U.S. like-for-like may not accelerate sharply because of ongoing macro weakness and intentional pullback in promotions.