• Pandora expects $175M annual gross impact from new U.S. tariffs on Asian imports.
  • The jewelry maker has already lowered its 2025 profit margin guidance to 24%.
  • CEO Alexander Lacik confirms price increases are inevitable for U.S. customers.

Tariffs Force Pandora's Hand

Pandora A/S will raise prices for American shoppers as new U.S. tariffs on imports from Thailand and other Asian manufacturing hubs take their toll. The Danish jewelry company estimates the duties could cost it DKK 1.2 billion ($175 million) annually, with about DKK 700 million hitting this year's bottom line.

"These costs will be passed through to consumers," CEO Alexander Lacik said bluntly when reached for comment. The company has already trimmed its 2025 EBIT margin forecast by 50 basis points to 24%, reflecting what executives called "unavoidable" pricing adjustments.

Supply Chain Squeeze

With 80% of Pandora's production concentrated in Thailand, the 10% tariffs pose particular challenges. While the company is exploring mitigation strategies like rerouting some distribution through Canada and Latin America, these efforts would only offset about DKK 250 million of the projected impact.

Industry analysts note Pandora isn't alone - competitors like Signet Jewelers face similar pressures. "This is an industry-wide margin compression event," said one luxury goods analyst who asked not to be named. "The question is which brands have pricing power to maintain profitability."

Diplomatic Hopes

The Royal Thai Government has signaled willingness to negotiate with U.S. trade officials, but any resolution would come too late to prevent Pandora's immediate pricing moves. Lacik cautioned that while current tariff levels are "manageable," further increases would force more dramatic consumer price hikes across the sector.

Pandora shares fell 2.3% in Copenhagen trading following the announcement, underperforming the OMX Copenhagen 25 Index. The company maintains its 7% year-over-year Q1 sales growth demonstrates underlying brand strength, but warned investors to expect margin pressure through at least 2025.