Pandora (PNDORA) Q3 2025 earnings summary

Executive summary

• Achieved 6% organic revenue growth and 2% like-for-like growth in Q3 2025, despite challenging macroeconomic conditions and weak consumer sentiment.

• Maintained strong gross margins near 80% and high return on capital at 43%.

• Continued execution of the Phoenix strategy, focusing on brand and design innovation, retail transformation, and expansion beyond wristwear.

• CEO transition announced: Alexander Lacik to retire, Berta de Pablos-Barbier to take over as CEO.

• New product launches (Talisman and Minis) received strong initial consumer response, supporting brand momentum.

Financial highlights

• Q3 2025 revenue reached DKK 6,269 million, up 6% year-over-year; like-for-like growth was 2%.

• Gross margin for Q3 was 79.3%, down 80 bps year-over-year due to external headwinds (commodities, FX, tariffs).

• EBIT margin for Q3 2025 was 14.0%, down 210 bps year-over-year, mainly due to FX, commodities, and tariffs.

• Adjusted EPS grew 5% year-over-year, but reported EPS declined 14% due to FX headwinds.

• Store network expansion contributed 4% to organic growth, up from 3% previously.

Outlook and guidance

• Organic growth guidance for 2025 unchanged at 7-8%, with like-for-like growth guidance revised to 3-4% (from 4-5%).

• EBIT margin for 2025 expected at ~24%; 2026 margin target lowered to ~23% due to commodity and FX headwinds.

• October like-for-like trading at 4%, above Q3 level, indicating a strong start to Q4.

• CAPEX expected at around 6-8.6% of revenue for 2025.

• Pricing increases expected to normalize to 1-2% per year, with flexibility to adjust based on market and tariff developments.