Pandora has reported a significant decline in its UK sales, a downturn the jewellery brand attributes to price increases implemented in response to soaring silver and gold costs.
The Danish company is also preparing for a financial impact from impending US tariffs, prompting considerations for further price hikes to mitigate these rising expenses.
Between April and June, Pandora's total global revenues climbed by 3 per cent on a like-for-like basis, reaching 7.1 billion Danish kroner (£820 million).
However, this positive global trend was not reflected in the UK, where sales dropped by 9 per cent year-on-year. The company suggested that a weak end-of-season sale partly contributed to this domestic slump.
In an effort to revitalise its performance, Pandora plans to intensify its marketing efforts to attract more customers throughout the second half of the year.
Operating approximately 6,900 stores and concessions globally, Pandora asserts its position as the world’s largest jewellery brand, specialising in accessible luxury pieces crafted from recycled gold and silver.
The company said the latest results came “despite a tough consumer backdrop combined with significant headwinds from foreign exchange rates, commodity prices and tariffs”.
Pandora said it has been impacted by US tariffs in relation to products it ships from Thailand, China, Vietnam, India and several other countries.
Southeast Asia has been subject to President Donald Trump’s steep levies on goods shipped to the US – although many countries are scrambling to make trade agreements to minimise the impact on industries.
Pandora is bracing for a financial hit worth 450 million Danish krona (£52 million) next year as a direct result of tariffs.
But it said it was working on measures to mitigate the costs, including switching sources of supply for materials in the US, and shipping jewellery directly to Canada and Latin America rather than it passing through its US warehouse.
The brand also said it was considering further price increases to help cover the impact.
It already implemented a 5 per cent price rise in October last year, a further 4 per cent increase in April, and a “low single-digit increase” in August, which it said was in response to higher commodity prices.
Gold and silver prices have soared this year as investors rushed to safer assets amid sharp movements in prices in the financial markets.
Alexander Lacik, president and chief executive of Pandora, said: “In these turbulent times, we are satisfied with yet another quarter of high single-digit organic growth and strong profitability.
“The results show that our brand and unique storytelling proposition continue to attract more consumers and that our global footprint enables us to balance ups and downs across the market.”
