Pandora (PNDORA) investor relations material

Trading performance and market environment

• Q4 organic growth was 4%, with full-year organic growth at 6%, below the 7%-8% guidance.

• EBIT margin for Q4 is expected around 33.5%, and full-year margin at 24%, in line with guidance.

• North America saw a slowdown with 2% like-for-like growth in Q4, impacted by softer holiday traffic, though still outperforming the market.

• Europe remained broadly stable, with -1% like-for-like and +2% organic growth, and opportunities identified for improved execution.

• Global street traffic was negative in most major markets, and U.S. consumer confidence reached historic lows in late 2025.

Cost management and profitability

• Strong cost discipline and the Silverstone cost program helped maintain profitability despite external headwinds.

• Q4 faced about 400 basis points of headwinds from FX, commodities, and tariffs, but EBIT margin only declined by about 100 basis points year-over-year.

• Gross margin in Q4 was around 78%, down from 79.8% in Q4 2024, with about 300 basis points of external headwinds mitigated by internal actions.

• Marketing spend as a percentage of revenue remained consistent year-over-year, with no cuts to brand investment.

• Bonus provisions were reversed due to lower like-for-like performance, providing some OpEx flexibility.

Strategic priorities and outlook

• Focus areas include re-energizing collections, strengthening brand relevance, and addressing high silver prices to protect margins.

• Product innovation will be more frequent and consumer-validated, with impactful launches planned throughout 2026.

• No immediate changes to network expansion plans, but selectivity will increase if like-for-like trends persist.

• Pricing strategy returns to 1%-2% annual increases, with potential for further adjustments depending on commodity prices.

• Over 75% of 2026 silver needs are hedged, but higher prices will still have some impact.