Pandora reported lower-than-expected sales growth last year, with management citing challenging macroeconomic conditions.

The jewelry retailer posted organic revenue growth of 6 per cent for the year ended December 31, below its guidance range of 7-8 per cent. This consisted of like-for-like (LFL) growth of 2 per cent and a 4 per cent contribution from network expansion and others.

EBIT margin was down by 130 abscess points to 23.9 per cent, compared to the guidance of around 24 per cent. The company noted it had mitigated most of the 300 basis points from external cost headwinds.

For the fourth quarter, organic revenue increased 4 per cent, with LFL sales remaining flat. LFL growth in North America slowed to 2 per cent due to weak consumer sentiment. EMEA was down 1 per cent, Apac was up 2 per cent, and Latin America was down 7 per cent.

Berta de Pablos-Barbier, president and CEO of Pandora, said the revenue growth was below expectations in a challenging macroeconomic backdrop.

“As new CEO, my priorities are clear and we have plans to strengthen brand desirability, reduce commodity exposure and evolve how we drive profitable growth,” she added.

The company plans to continue offering multi-material jewelry, including the introduction of jewelry with precious-metal plating in platinum. With this approach, it expects to maintain an EBIT margin above 21 per cent in the mid-term.

For FY26, Pandora expects organic revenue growth to range from -1 per cent to +2 per cent.