Despite tough macro headwinds, Pandora posted 8 percent revenue growth in the second quarter, with like-for-like sales up 3 percent and an additional 5 percent boost from network expansion.

During the quarter, organic sales reached 7.07 billion Danish kronor, or $990 million.

Operating profit reached 1.29 billion Danish kronor, or $181 million, with strong EBIT margins of around 24 percent due to pricing and cost efficiencies, said the company in its interim results published on Friday.

Pandora maintained its goal of “around 25 percent” in terms of EBIT, or earnings before interest and taxes, for 2026 — 24 percent if accounting for tariff headwind.

With manufacturing spread out through Thailand, China, Vietnam and India, the company has been working on its tariff mitigation measures, switching up its supply chain as well as shipping product directly to Canada and Latin America as opposed to through its U.S. distribution center.

The Copenhagen-based jeweler highlighted growth in the U.S. market, which remained strong at 8 percent during the period.

“We started changing the strategy in the U.S. around 2020, and since then, the U.S. business has doubled, we now have a 2 percent market share, the largest player has 4 percent. If that’s anything to go by, that would suggest that there should be quite some runway for growth,” said Alexander Lacik, president and chief executive officer of Pandora.

“One part of this comes with expanding the network. This is still a mass market proposition, so distribution or easy access to the brand physically is critically important,” Lacik added.

Sales declined in the U.K., Italy and France, but this was offset by double-digit growth in Spain, Portugal, the Netherlands and Poland, bringing overall European market increase to 1 percent.

“We expect share price pressure near term, reflecting weaker June and July like-for-like growth, particularly in key European markets and with the Moments platform,” Citi wrote in a research note.

With the closure of 12 concept stores during the period, sales in China dropped 15 percent. Pandora expects to close up to 100 stores in China, up from “at least 50” previously.

“We have a more fundamental issue in China which we need to fix. The problem is that our brand wasn’t properly introduced when we first entered the Chinese market in 2015. This means Chinese consumers do not know what we stand for,” the company shared in a statement regarding China issues.

“China is the biggest jewelry market in the world, and we remain fully committed to the business there,” the company said.

Lacik also detailed Pandora’s plan to transform from a “wristwear player” into a jewelry brand with expanded categories rooted in accessible luxury.

Initiatives include the launch of its entry price point Minis products, which are part of its core Charms business, and a new Talisman collection that highlight lab-grown diamonds. Both will be launched at the end of September.

“I think Minis in particular, but also Talisman, will offer very, very attractive price points for the concept that we’re offering,” said Lacik, adding that Pandora will also “keep bringing new aesthetics and new ideas into the Moments and the Core platforms. So then you have a spill-over effect, that there’s something happening overall with the core.”

Citi added: “Despite various external headwinds, including subdued consumer sentiment in developed markets and fixed income, commodities and tariffs, management should not deviate from its long-term goal to become a full jewelry brand. In our view, operating across all categories — well beyond bracelets and charms, which account for only 20 percent of the jewelry market — will require ongoing innovation.”