Pandora, the world’s largest jeweler by volume, rose Thursday after the company addressed investor concerns about its reliance on silver.
Copenhagen-listed shares rose as much as 7% after it guided for largely flat organic growth in 2026 alongside its quarterly earnings report, and said it would introduce platinum-plated jewelry after the price of silver had more than doubled over the past year. Shares were last seen trading 4.9% higher.
“If you look at our volatility of silver, one of the things that we have to [do] for the company is to decouple that from the silver trading,” CEO Berta de Pablos-Barbier told CNBC’s “Squawk Box Europe.”
“Varying our basket from new metals is going to help us, because we will not be so dependent on only one metal, which is today silver,” she said, adding that about 60% of Pandora’s business today was silver.
While spot silver was down over 12% early Thursday at around $80 an ounce, it is still up more than 150% from about $30 an ounce a year ago.
Analysts have warned that the volatile price of silver was a “pernicious problem” for the Danish jeweler. A more pressured consumer has also impacted sales.
Jefferies analysts on Tuesday said investors will be hesitant to engage with Pandora given recent silver moves. “The challenges of the last few months will mean, even in a more normal silver price world, [Pandora] will remain substantially cheaper than even a year ago.”
Pandora stock has fallen around 60% over the past 12 months.
Cautious consumers
This year, Pandora expects organic growth to land somewhere between negative 1% and 2%, and a profit (earnings before interest and tax) margin of between 21% and 22%.
De Pablos-Barbier, who took up the role as CEO last month, told CNBC that moving to a platinum-plated material and expanding its portfolio would allow the company to keep margins in the 20’s.
In the fourth quarter, organic growth was 4% as demand in the U.S. market, which accounts for about a third of its business, remained soft.
“The reality is that we are seeing the lowest consumer sentiment since the 60s in that market,” De Pablos-Barbier said. “This is nothing I can control, what I can control is what I bring to the brand and how much excitement and new products I can bring to the U.S. consumers, so that they continue to be loyal and they continue to come to our stores.”
Like-for-like growth, which measures sales across comparable stores, was flat in the quarter as well as during the first month of 2026, Pandora said.
It was also the first quarter of negative like-for-like growth since late 2022 in Pandora’s strategically important “Fuel with More” segment, which focuses on expanding beyond the traditional charms it’s known for into new categories like rings, necklaces and lab-grown diamonds, Citi analysts noted.
“Extreme precious metals inflation has materially reduced earnings visibility,” the analysts said. “Near-term confidence is further undermined by a volatile US and European macro backdrop (~80% of sales) and potential signs of brand fatigue and broader jewellery consumption softening.”
The jeweler posted a 6% organic growth for 2025, preannounced in January, down from 13% in the previous year and missing its own guidance of between 7% and 8%.
[/gpt3]
