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.

• Gross margin remained robust at 79.3%, with strong cash flow and EPS growth in constant currency, despite significant headwinds from tariffs, FX, and commodities.

• Strategic focus on expanding the brand beyond wristwear, driving innovation, and enhancing in-store and digital experiences, supported by the Phoenix strategy.

• CEO transition announced, with Berta de Pablos-Barbier set to succeed Alexander Lacik in March 2026.

• Continued investment in brand, innovation, and retail transformation to unlock further market potential.

Financial highlights

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

• Gross margin was 79.3%, down 80bp year-over-year due to 280-380bp of external headwinds.

• EBIT margin declined to 14.0% (down 210bp year-over-year), mainly impacted by commodities, FX, and tariffs.

• Adjusted EPS grew 5% year-over-year in constant currency, though reported EPS declined 14% due to FX headwinds.

• Return on capital/invested capital remained high at 43%.

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%).

• Network expansion contribution to growth raised to 4% (from 3%) due to better-than-expected new store performance.

• EBIT margin guidance for 2025 remains at ~24%, with 2026 target revised to ~23% due to additional 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% of revenue for 2025.