Pandora (PNDORA) Q1 2025 earnings summary

Executive summary

• Achieved 7% organic and 6% like-for-like growth in Q1 2025, driven by the Phoenix strategy, brand transformation, and network expansion.

• Gross margin expanded to 80.4% (+110bp YoY), EBIT margin improved to 22.3% (+30bp YoY), and EPS grew 19% year-over-year.

• Maintained high return on capital and strong free cash flow, supporting continued investment in brand, digital, and growth initiatives.

• Brand strength, global scale, and digital transformation provide resilience amid volatile macroeconomic conditions.

• Well-positioned to navigate macroeconomic and geopolitical uncertainty, maintaining high profitability and cash flow.

Financial highlights

• Q1 2025 revenue reached DKK 7,347 million, up 7% year-over-year, with LFL growth at 6%.

• Gross margin improved to 80.4% (+110bp YoY) despite commodity headwinds; EBIT margin at 22.3% (+30bp YoY).

• Net profit for Q1 2025 was DKK 1,101 million; basic EPS rose 19% to DKK 14.0.

• Return on invested capital (ROIC) remained high at 45%; net working capital at 4.2% of LTM revenue.

• OpEx ratio up 80 basis points, mainly due to a 12% increase in marketing expenses.

Outlook and guidance

• 2025 organic growth guidance maintained at 7-8%, with LFL growth targeted at 4-5%.

• EBIT margin guidance updated to around 24% (from 24.5%) due to FX and tariff headwinds; 2026 target at around 25%.

• Network expansion expected to add 3% organic growth CAGR 2024-2026, with 400-500 new stores planned.

• No further extraordinary price increases assumed for 2026; normal pricing of 1%-2% expected.

• Guidance assumes no material change in economic growth or consumer behavior; vigilance maintained amid macro uncertainty.