Pandora narrows 2026 outlook to 2–3% organic growth and 22.5–23% operating margin
Key Facts
Pandora narrowed its 2026 outlook on November 4 toward the upper end of its previous ranges, setting organic sales growth at 2–3% instead of 0–3%, and operating profit margin at 22.5–23% instead of 22–23%, according to the company. The revision raises the lower end of each forecast while leaving the upper end unchanged. The announcement coincided with third-quarter results showing 6% organic growth. The company also recorded 4% like-for-like sales growth, while network expansion and other factors contributed 2% to organic growth. This puts the quarter’s results in the context of the annual outlook update, without changing the ceiling of either range announced by the company.
Pandora’s revenue was 6,694 million Danish kroner in the third quarter of 2026, compared with 6,269 million in the same period of 2025, according to company data. Operating profit rose to 1,064 million kroner from 880 million a year earlier. Like-for-like sales growth accelerated to 3% in North America, while improving to 1% in Europe, the Middle East and Africa. Growth was 20% in Asia-Pacific and 6% in Latin America. Chief Executive Berta de Pablos-Barbier said like-for-like growth was positive in all regions, calling it an encouraging step in a challenging consumer environment.
Gross margin was 83.7% in the third quarter, including a positive impact of 340 basis points from exceptional income related to a partial recovery of Pandora’s claim concerning U.S. tariffs, according to the company. Excluding this impact, the margin remained above 80%, up 100 basis points year over year. This distinction separates the reported margin from performance excluding non-recurring income, as the headline figure reflects the recovery alongside operating results. De Pablos-Barbier linked the brand’s improved appeal to more distinctive designs and culturally relevant marketing. She said the company is broadening its range of designs and styles while also updating its traditional and heritage designs.
Despite third-quarter growth, like-for-like sales rose 1% in October, the company said. Pandora said lower promotional activity weighed on this rate, while underlying trends remained at about 3%. October’s figure offers a more recent reading than the quarterly results and differs from the 4% like-for-like sales growth in the third quarter. The company said the decline in promotional activity was the factor that pressured the monthly reading. Pandora shares listed in Copenhagen closed up 8% at the open on November 4, then were up 6.7% at 08:30 GMT, outperforming the European STOXX index, which was flat, according to Reuters.
In its second-quarter report published on August 12, Pandora had forecast organic growth of 0–3% and an operating margin of 22–23%, following an earlier outlook for growth of -1–2% and a margin of 21–22%. The November announcement narrows the two ranges set in August, raising their lower bounds to 2% for growth and 22.5% for margin. For the first nine months, organic growth was 3% in 2026, compared with 7% in the first nine months of 2025. Organic growth for fiscal 2025 was 6%. The comparison shows a slowdown in the cumulative growth rate over the nine months, alongside quarterly organic growth of 6% in the third quarter.
In its plan for next year, the company raised its 2027 operating profit margin target to 14–15% including exceptional items, and to 15.5–16.5% excluding them, compared with previous targets of more than 12% and 14%, respectively. Pandora also expanded its trial of platinum-plated jewelry, which began in the Netherlands in July, to markets including the United States, the United Kingdom and Australia. The company said initial trial results were encouraging and that it was on track to begin the transition in 2027. This plan links product testing in a broader range of markets with the date the company is targeting to begin the transition. Its shares listed in Copenhagen closed up 8% at the open on November 4, before posting gains of 6.7% at 08:30 GMT.