The global jewellery powerhouse Pandora is pushing ahead in the US market, defying economic uncertainty and potential tariff hikes. With US sales climbing by 11% in the first quarter of 2025, the Danish jewellery maker is doubling down on its largest market outside of Europe. But as trade tensions and economic pressures simmer, can Pandora keep its sparkle in the competitive North American market?
Pandora’s US Growth Outshines the Competition
Pandora, listed on the Nasdaq OMX in Copenhagen, has emerged as a standout performer in the global jewellery market. The company reported a net profit of 1.1 billion Danish krone (approximately $168 million USD) in the first quarter, up from 965 million krone in the same period a year earlier. Total sales rose 7.3% year-on-year, hitting 7.3 billion krone. This growth was fuelled largely by the US, which accounted for a substantial 32% of the company’s revenue during this period.
“US consumer demand for the category is not super strong, but the demand for Pandora has been very strong,” Pandora CEO Alexander Lacik told Reuters, reflecting the brand’s ability to outperform its rivals even in a sluggish retail environment.
Tariff Troubles: A Risky Road for Pandora?
Despite its impressive US sales, Pandora faces a potentially costly challenge – the looming threat of US tariffs. Currently, the US government is considering reinstating a 36% tariff on Thai imports, a move that could add tens of millions of dollars to Pandora’s annual costs. This is a significant concern for the jewellery maker, which employs over 13,200 people in Thailand, primarily across its two major manufacturing hubs in Bangkok and Lamphun.
Lacik acknowledged the risk but struck a confident tone, saying, “If that happens and the demand generally goes down in the US, of course, we’ll have to kind of rethink our plan a little bit. But at this moment in time, we’re punching away because it’s working.”
Strategic Pricing and Profit Margins
To counter rising costs, including a spike in silver prices, Pandora has already implemented price hikes – a 5% increase in October, followed by an additional 4% in April. Despite this, Lacik stressed that the brand remains committed to its “affordable luxury” positioning, a key differentiator in the fiercely competitive jewellery market.
“It could be that we move the pricing globally, it could be that we move a bit more in the US, today I don’t know,” he said, highlighting the brand’s flexible approach to pricing. This strategy aims to protect profit margins without alienating its core customer base.
Global Manufacturing Strategy Remains Steadfast
While other brands might consider shifting production to avoid steep tariffs, Pandora has no immediate plans to move its manufacturing base out of Thailand. Instead, the company is expanding its global footprint with a new factory set to open in Vietnam next year, a move aimed at diversifying its supply chain without compromising quality or affordability.
“Even if you have these very high tariffs in the US, I still probably wouldn’t change my supply strategy,” Lacik stated, emphasizing the importance of maintaining operational efficiency in a highly competitive global market.
The Road Ahead for Pandora
As the US and China resume trade talks in Geneva, Pandora’s ability to adapt to changing economic conditions will be crucial. For now, the jewellery maker’s strong US performance, savvy pricing strategy, and streamlined manufacturing operations appear to be a winning formula.
With its charm bracelets, rings, and necklaces continuing to capture the hearts of millions, Pandora’s growth story is far from over, even as it navigates the complexities of a global marketplace.
