Pandora delivers 6% organic growth in Q3 - Guidance narrowed towards upper end

The Q3  gross margin ended at 83.7%. One-off income from a partial refund of Pandora’s US IEEPA tariff claim positively impacted the gross margin by 340bp. Excluding this, the gross margin remained  above 80%, up 100bp Y/Y supported by, among others, efficiencies and promotional discipline.

The Q3 EBIT margin landed at 15.9%, +190bp Y/Y, benefitting 370bp from  above mentioned one-off tariff impact. The underlying EBIT margin was broadly flat Y/Y.

Strategic highlights

Pandora is sharpening its strategy for the next phase of growth. As previously communicated, the new strategic direction includes a greater focus on design as a key driver of desirability, evolving the marketing model with stronger local relevance and a notable elevation of the consumer experience.

In 2027, Pandora will scale up the new design strategy with a more desirable and distinctive product portfolio, broadening the designs and aesthetics consumers associate with Pandora. During Q3, Pandora saw initial proof points; the expanded Talisman collection continued to resonate well with consumers.

With its new marketing model, Pandora is redefining how it sustainably creates desire, cultural relevance and local impact. Pandora has launched two new creative platforms; Pandora Wonders and Pandora Voices. The platforms have demonstrated how culturally relevant activations can attract new consumers, providing a framework for future activations.

Pandora will be taking steps in evolving its consumer experience with the stores becoming more expressive, warm, and engaging, using storytelling around our collections to spark discovery.

The pilot test of platinum-plated jewellery, initiated in the Netherlands in July, delivered encouraging results. The test has now been expanded to a broader range of markets, including the US, UK, and Australia, and Pandora is on track to initiate the transition in 2027.

2026 Guidance & current trading, 2027 EBIT margin target

The guidance for 2026 is narrowed towards the upper end of the previous ranges to 2-3% organic growth (previously 0-3%) and  an EBIT margin of 22.5-23% (previously 22-23%).

LFL growth in October was 1%. This was negatively impacted by lower promotional activity. Underlying trends remain healthy at around 3% LFL growth.

The EBIT margin target for 2027 is updated to 14-15% including one-offs and 15.5-16.5% excluding one-offs (previously above 12% and above 14%, respectively).