Pandora has announced plans to close up to 100 underperforming concept stores in mainland China as part of efforts to optimise its global retail footprint. This is double the number of closures previously expected. The company has already closed 22 stores in China so far this year.
China’s share of Pandora’s global revenue declined from 9% in 2019 to 1% in 2024. The brand’s customisable ‘bracelet + charm’ concept initially attracted interest from younger consumers, but the category has since become common among domestic gold jewellery retailers, reducing its distinctiveness in the market.
Global Store Openings to Continue
While the number of store closures in China has increased, Pandora still expects net openings of 25 to 50 stores globally in 2025, down from its previous estimate of 50 to 75. It continues to target the addition of 400 to 500 stores worldwide by the end of 2026.
The company has adjusted its near-term expectations while maintaining its longer-term store expansion target.
Second-Quarter Financial Performance
For the quarter ending 30 June 2025, Pandora reported revenue of DKK 7.08 billion ($1.11 billion), representing a 4% increase on a reported basis and 8% on an organic basis. Like-for-like sales rose 3%, supported by demand in the United States, particularly around the Mother’s Day trading period. Operating profit increased 0.5% to DKK 803 million ($125.9 million).
Sales of Pandora Lab-Grown Diamonds rose 36% year-on-year, making it the second-fastest growing product category during the quarter. However, this segment, along with collaborative collections, carries lower margins than the group average.
“Product mix contributed negatively driven by the strong performance in Collabs and Pandora Lab-Grown Diamonds, which both carry gross margins below group level,” the company said in its earnings release.
Tariff Exposure and Supply Chain Adjustments
Pandora noted potential cost pressures linked to tariffs on products manufactured in Thailand, China, Vietnam, India and other countries. The company anticipates an impact of DKK 200 million ($31.4 million) in 2025 and DKK 450 million ($70.6 million) in 2026.
To manage these pressures, Pandora is implementing mitigation measures including changes to sourcing and shipping strategies. It has also indicated that price increases are under consideration.
Implications for Jewellers
Pandora’s revised plans in China reflect the changing dynamics of a market where consumer preferences and competitive offerings have shifted significantly. Its continued investment in lab-grown diamonds, despite margin constraints, suggests ongoing consumer demand in this category.
The company’s responses to tariff exposure and supply chain challenges highlight the importance for jewellers of reviewing production locations, pricing strategies and market-specific demand patterns when planning future operations.
