Pandora (PNDORA) investor relations material

Executive summary

• Achieved 3% organic growth and 1% like-for-like (LFL) growth in Q2 2026, reflecting resilience amid challenging market conditions and a deliberate transition to a new growth model focused on design, cultural relevance, and local execution.

• Profitability remains strong, supported by disciplined cost control, robust underlying drivers, and a one-off US tariff refund; gross margin reached 80.5% (78.2% excluding the refund).

• Leadership transition: CFO Anders Boyer to retire, succeeded by Paulo Garcia in October; André Branch appointed President of North America.

• Progress on platinum-plated jewellery rollout, with positive pilot results in the Netherlands and broader rollout planned for 2027.

• Promotional activity has been reduced to improve brand health and growth quality.

Financial highlights

• Q2 2026 revenue reached DKK 7,219 million, up 2–3% year-over-year, with 1% LFL and 3% organic growth.

• Gross margin improved to 80.5% (+120bp Y/Y), with EBIT margin at 20.3% (+210bp Y/Y), both aided by a one-off US tariff refund.

• Earnings per share increased to DKK 11.7 from DKK 10.3 in Q2 2025.

• Cash conversion (incl. leases) at 101%; net working capital at 2.2% of LTM revenue.

• Volume slightly positive; like-for-like units down 2%, price up 3% in Q2.

Outlook and guidance

• 2026 organic growth guidance upgraded to 0–3% (from -1% to +2%), with network expansion expected to contribute ~3%.

• EBIT margin guidance raised to 22–23% (from 21–22%), reflecting the one-off tariff refund and resilient profitability.

• Like-for-like growth guidance raised to -2% to +1% (from -3% to 0%).

• CAPEX expected at ~7%–7.8% of revenue, focused on store network and digital initiatives.

• Guidance remains cautious due to ongoing macroeconomic and geopolitical uncertainties.