Pandora (PNDORA) Q2 2025 earnings summary

Executive summary

• Achieved 8% organic growth and 3% like-for-like growth in Q2 2025, with strong US and Rest of Pandora performance offsetting challenges in China and select European countries, despite macroeconomic, FX, and tariff headwinds.

• Gross margin remained robust at 79.3% (down 90bp YoY), EBIT margin at 18.2%, and return on capital/invested capital at 44%.

• Phoenix strategy continues to drive transformation into a full jewelry brand, with ongoing investment in brand, digital, and store network, and a strong product pipeline for H2 2025.

• Strategic closure of up to 100 loss-making stores in China planned for 2025 to reset market and improve profitability.

• New product launches (Talisman, Minis) and emotive marketing campaigns planned for H2 2025.

Financial highlights

• Q2 2025 revenue reached DKK 7,075m (+8% YoY), with like-for-like growth at 3% and organic growth at 8%.

• Gross margin at 79.3% (down 90bp YoY); EBIT margin at 18.2% (down 160bp YoY); EBITDA margin at 27.0%.

• EPS at DKK 10.3 in Q2 2025, up 6% YoY (18% at constant FX).

• Return on capital employed/invested capital at 44%.

• Cash conversion at 74%; CAPEX at 8.5% of revenue.

Outlook and guidance

• FY 2025 organic growth guidance maintained at 7-8%, with like-for-like growth at 4-5%.

• EBIT margin guidance unchanged at around 24% for 2025, including tariff headwinds.

• 2026 EBIT margin target at least 24% (including tariffs), with ongoing cost focus.

• Network expansion expected to add ~3% growth; CAPEX expected at ~7-8.5% of revenue.

• H2 2025 expected to see higher like-for-like growth due to new product launches and strong marketing campaigns.