Pandora (PNDORA) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered 2% organic growth with flat like-for-like sales, maintaining solid profitability despite 440bp external headwinds from commodities, FX, and tariffs.

• Strategic focus includes accelerating like-for-like growth, refreshing core collections, new product launches, and evolving the marketing model.

• Transition to platinum-plated jewellery is underway to offset rising silver prices and reduce commodity exposure, with 80% of silver revenue to transition by 2028.

Financial highlights

• Q1 2026 revenue was DKK 7,109 million, down 3% year-over-year; organic growth was 2%.

• Gross margin was 79.5% (down 90bp YoY); EBIT margin was 20.9% (down 140bp YoY); EPS (diluted) was DKK 12.6, a 10% decrease YoY.

• Return on invested capital (ROIC) was 39%, down from 45% YoY.

• Net working capital excluding commodity hedging remained stable at around 3.5% year-over-year.

• Cash conversion (incl. leases) was -40%, reflecting normal seasonality.

Outlook and guidance

• 2026 guidance unchanged: organic growth of -1% to +2%, EBIT margin of 21%-22%, and like-for-like growth of -3% to 0%.

• Network expansion expected to contribute ~2% to growth; FX expected to be a 1.2% revenue headwind.

• Mid-term EBIT margin target above 21% reaffirmed, with structural high-margin profile expected post-transition.

• CAPEX for 2026 expected at around 7% of revenue, with continued investment in digital and store network.