Pandora reported modest second-quarter growth in 2026, with like-for-like sales rising 1% while its lab-grown diamond business faced a sharp slowdown.
The Danish jeweler’s revenue reached DKK 7.22 billion ($1.10 billion), up 2% at reported exchange rates and 3% organically compared to the same period last year. The company cited new product launches, retail expansion in Latin America and Asia-Pacific, and a one-time US tariff refund as key drivers of profitability.
Lab-grown diamond sales dropped 20% in the quarter, with weaker demand for higher-end pieces priced between $1,000 and $1,500. The jeweler now plans to shift its focus to more affordable options, targeting a $250–$500 price range. The segment remains small, contributing less than 1% of total earnings. Since 2021, the brand has used only lab-grown diamonds in its jewelry, making this performance a key test of consumer appetite in the lower-priced market.
Operating profit grew to DKK 1.46 billion ($225 million), up from DKK 1.29 billion a year earlier, while net profit rose to DKK 875 million ($135 million). Excluding the tariff refund, underlying profit margins held steady. Cost pressures from commodities, currency fluctuations, and tariffs persisted, offsetting some gains.
Pandora’s management called the quarter a step forward in its growth strategy. President and CEO Berta de Pablos-Barbier noted progress in reviving sales momentum, pointing to that increase and early results from recent initiatives. The company raised its 2026 organic growth forecast to between 0% and 3%, up from a previous outlook of -1% to 2%. The shift reflects stronger performance in key markets but also highlights the challenge of sustaining demand for premium lab-grown jewelry.
The next phase will test whether Pandora can stabilize demand for its core products while expanding its lab-grown diamond reach. The revised guidance suggests cautious optimism, but the same decline in high-end lab-grown sales remains a hurdle. For now, the company’s focus is on refining its positioning before scaling up.
