Global jewellery maker Pandora has shared a positive outlook for the second quarter of this year, attributed to its Phoenix strategy, which aims to expand both its product line and global footprint.
The company’s revenue grew organically by 15 per cent in Q2, driven by an 8 per cent increase in like-for-like (LFL) sales and a 6 per cent contribution from network expansion.
Profitability was also bolstered, with the company achieving a gross margin of 80.2 per cent, surpassing its 80 per cent threshold for the first time. This improvement was attributed to favourable pricing, efficiencies at its crafting facilities, and a strong channel mix.
CEO Alexander Lacik expressed confidence in Pandora’s trajectory and its strategy, which he says will take the brand to “new heights.”
“We have successfully started the journey to make Pandora known as a full jewellery brand, and our results show that consumers like what they see,” said Lacik.
Pandora’s key markets saw solid results, such as Europe – particularly in Germany – which reflected a 10 per cent LFL growth; in the US with 5 per cent LFL growth; while its performance in the rest of the world was equally strong at a 13 per cent LFL.
The brand’s online channel also experienced momentum, with a 19 per cent LFL growth, representing 20 per cent of its revenue.
Meanwhile, Pandora-owned stores continued to outperform partner stores, with the physical network delivering 6 per cent LFL growth compared to the latter at zero.
The company’s new segment, lab-grown diamonds, generated revenue of US$8.9 million (DKK$ 61 million), with an 88 per cent LFL increase. This growth was supported by an expanded assortment and is expected to fully annualise its impact this month.
Pandora is also expanding its manufacturing capacity. In May, the company began construction of a new crafting facility in Binh Duong Province, Vietnam.
The facility – which will be Pandora’s fourth manufacturing site and first outside Thailand – is expected to produce up to 60 million pieces of jewellery annually when it opens in early 2026.
The company said the site will continue to source recycled gold and silver, operate on renewable energy, and adhere to LEED Gold standards, a leading green building certification.
In addition, Pandora relocated its EMEA distribution centre to a larger facility in Hamburg, Germany, in June.
The new centre, which is double the size of the previous one and spans 11,000sqm, will enhance the company’s storage, packaging, distribution, and office capabilities.
Looking ahead, Lacik said he remains to be hopeful in the months to come.
“Thanks to our strong performance, we are again raising revenue guidance for this year and look to the second half of the year with optimism,” he concluded.
Pandora, headquartered in Copenhagen, Denmark, employs 33,000 people worldwide and produces its jewellery at three facilities in Thailand. Established in 1989, Pandora Production Thailand now employs more than 13,200 people across Bangkok and Lamphun.
