Pandora (PNDORA) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered 2% organic growth and flat like-for-like sales amid a challenging consumer environment, with EBIT margin at 20.9% and returns close to 39%, despite 440bp external headwinds from commodities, FX, and tariffs.

• Strategic focus is on accelerating like-for-like growth, refreshing core collections, and expanding into underrepresented aesthetics, supported by new product launches and marketing initiatives.

• Transition to platinum-plated jewellery is underway to offset rising silver prices and reduce commodity exposure, with 80% of silver revenue to transition by 2028.

• Regional performance was mixed: EMEA and North America saw -2% like-for-like growth, Latin America accelerated to 6%, and Asia-Pacific grew 12%.

• Profitability remained solid, with strategic initiatives underway to re-energize growth and evolve the marketing model.

Financial highlights

• Q1 2026 revenue was DKK 7,109 million, down 3% year-over-year; organic growth was 2%.

• Gross margin was 79.5%, down 90 basis points year-over-year due to tariffs, FX, and higher commodity prices, but supported by cost efficiencies.

• EBIT margin was 20.9%, down from 22.3% in Q1 2025, with guidance for 2026 at 21%-22%.

• Earnings per share was DKK 12.6, down from DKK 14.0 YoY; ROIC was 39%, down from 45% YoY.

• Net working capital excluding commodity hedging was around 3.5%, with total net working capital at 6.5% of revenue.

Outlook and guidance

• Organic growth guidance for 2026 is -1% to 2%, with like-for-like growth of -3% to 0% and network expansion around 2%.

• EBIT margin guidance remains at 21%-22%, with the most significant year-over-year margin decline expected in Q2 and Q3.

• External headwinds from commodities and tariffs expected to impact EBIT margin by 200-250bp.

• 2026 is positioned as a transition year, with mid-single digit like-for-like growth targeted from 2027 as new initiatives take effect.

• CAPEX for 2026 expected at around 7% of revenue, with continued investment in digital and store network.