Pandora Reports US Sales Decline Amid Weak Demand from Lower-Income Consumers

Jewelry maker Pandora has flagged a sales stumble in the U.S., attributing the drop to hesitancy among mid- and lower-income shoppers. Despite this, the company managed to surpass revenue forecasts for the first quarter, buoyed by stronger results overseas.

Tightening consumer pockets in the U.S. collided with higher import tariffs and surging silver prices, putting a squeeze on margins for the Danish firm, known for its silver charm bracelets priced around $70. North American sales declined by 2% on a comparable basis, reflecting the cautious mood of these consumers amid ongoing geopolitical tensions such as the Iran conflict.

While sales in Europe, the Middle East, and Africa also slid by 2%, growth in Latin America and the Asia-Pacific region softened the blow, leaving Pandora's total first-quarter revenue at 7.109 billion Danish crowns (about $1.12 billion), slightly above analyst expectations. Operating profit topped estimates as well, reaching 1.487 billion crowns thanks partly to reduced marketing expenses.

New CEO Berta de Pablos-Barbier, who stepped in after leading Pandora's marketing efforts, is pushing for a strategic pivot. Her plan includes attracting fresh customers, unveiling new designs, and boosting advertising efficiency. She acknowledges 2026 as a transition period, aiming for stronger comparable sales gains in 2027.

The group has been combating volatile silver costs by shifting at least half its silver jewelry line to platinum-plated versions. Additionally, Pandora is expanding its lab-grown diamond business, emphasizing lower carbon footprints with external audits confirming the environmental benefits over mined diamonds. Sources for these diamonds include renewable energy-powered suppliers in the U.S. and India.

Despite progress abroad, Pandora's share price remains down roughly 50% in the past year, a reflection of both raw material cost pressures and softening demand in key markets. Nonetheless, the company's efforts to diversify materials and markets indicate a multiyear plan to regain momentum.

As global consumers face inflationary challenges and geopolitical uncertainties, Pandora's experience highlights how disposable income levels directly influence luxury goods spending, especially in the middle and lower tiers. It remains to be seen how shifting material strategies and geographic focus will play out amid these pressures.

This evolving picture raises questions about the durability of demand in Pandora's core markets and whether its reinvention efforts will reshape its top-line trajectory beyond 2026.