COPENHAGEN — Global jewellery giant Pandora is doubling down on its expansion in the United States, its largest market, even as potential import tariffs loom that could significantly impact its bottom line.
Despite softening consumer demand in the broader jewellery category, Pandora CEO Alexander Lacik said the brand is outperforming competitors in the U.S. market. “US consumer demand for the category is not super strong, but the demand for Pandora has been very strong,” Lacik told Reuters following the company’s first-quarter earnings announcement.
However, Lacik acknowledged that steep tariffs, if reintroduced by the U.S. government, could force a strategic reassessment. “If that happens and the demand generally goes down in the US, of course we’ll have to kind of rethink our plan a little bit. But at this moment in time, we’re punching away because it’s working,” he said.
The U.S. remains Pandora’s largest and fastest-growing market, contributing 32% of total revenue in the first quarter. Comparable sales in the U.S. surged 11% year-over-year, helping lift overall quarterly profit to 1.1 billion Danish krone (approximately USD 158 million), up from 965 million krone a year ago. Revenue rose 7.3% to 7.3 billion krone.
However, the potential reimposition of “reciprocal” U.S. tariffs — including a 36% tariff on imports from Thailand — could cost Pandora tens of millions of dollars annually. The company currently manufactures all of its charm bracelets and necklaces at two facilities in Thailand, employing around 13,200 workers in Bangkok and Lamphun.
While Pandora has been increasing prices — by 5% last October and another 4% in April — Lacik said future pricing adjustments are still under review. “It could be that we move the pricing globally, it could be that we move a bit more in the US, today I don’t know,” he said, emphasizing the brand’s commitment to affordability.
Pandora is also moving forward with plans to open a new production facility in Vietnam next year, part of a longer-term strategy to diversify its supply chain. Despite rising costs and tariff concerns, Lacik ruled out U.S.-based manufacturing, citing high labour costs and a shortage of skilled jewellery artisans.
“Even if you have these very high tariffs in the US I still probably wouldn’t change my supply strategy,” he said.
Lacik welcomed upcoming U.S.-China trade talks scheduled in Geneva, expressing hope for more predictable trade conditions that could help businesses plan more effectively.
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