Pandora's Glitter Dims as Sales Forecast Cut Amid Economic Challenges

On Wednesday, Danish jewellery brand Pandora announced a revision to its full-year sales growth forecast. The company cited weaker-than-expected third-quarter sales in Europe as a primary reason for the adjustment.

Pandora's operating profit for the quarter was reported at 880 million Danish crowns, a decrease from 980 million crowns the previous year. Despite analysts predicting an operating profit of 873 million, comparable sales growth reached only 2%, missing expectations of 3% growth. Declines were particularly noted in Germany, Britain, France, and Italy.

Challenges such as U.S. tariffs and increased silver prices have been exacerbating costs for Pandora, contributing to a 38% drop in its shares this year. The company has downgraded its yearly comparable sales growth projection to 3-4%, down from an earlier 4-5%, though it maintains an organic growth target of 7-8%. Despite these setbacks, October showed a promising 4% growth in sales, leading to cautious optimism as the holiday shopping season approaches.