Lab-GrownNov 08, 2022
Blue Nile Moves into Lab-Grown DiamondsFinancialsNov 08, 2022
Heading Into Q4, Pandora Raises Prices on Select Items 4%
Announced during its Q3 earnings call, Pandora also spoke on its new lab-grown diamond jewelry line.
Two pieces from “Diamonds by Pandora,” the company’s line of lab-grown diamond jewelry that launched in the United States in August. Executives said Tuesday the line is off to a good start and the brand will begin offering 2-carat lab-grown diamonds for the holiday season. Currently, the largest size available is a 1-carat stone.
Copenhagen, Denmark—Pandora has raised prices an average of 4 percent on one-third of its global inventory and said the launch of its lab-grown diamond line in the United States has been “well received.”
The company made both announcements during its third-quarter earnings call with investors, a quarter that saw the popular Danish bead brand hold the line on sales, sending its stock price up 8 percent in trading Tuesday.
Pandora’s Q3 sales totaled 5.26 billion Danish kroner ($712.4 million), up 1 percent when compared with the third quarter 2021 (3 percent on an organic basis), and a 13 percent increase compared with Q3 2019.
EBIT margin was 18.6 percent, down from 20.2 percent in the third quarter 2021.
In the U.S., Pandora’s sales slowed down as expected due in part to the lack of stimulus money, which supplemented consumers’ disposable income in 2021.
U.S. third-quarter sales sunk 9 percent compared with 2021 (3 percent on an organic basis) but were up 56 percent when compared with 2019.
The U.S. market was the test market for Pandora’s price increases, which were implemented in three stages beginning in the second quarter before going global in early October, CEO Alexander Lacik said on Tuesday’s earnings call.
After several years of cutting back on promotions, Pandora raised prices on items it identified as having a “more favorable elasticity profile;” specifically, gold-plated jewelry as well as jewelry that’s made in collaboration with another brand.
It did not raise prices on its entry-level items or “items of strategic importance.”
When asked by an analyst about the impact of higher prices so far, Lacik said it’s too early to tell.
He did note, however, that while the increases were implemented to drive revenue and profit, the company is wary of alienating customers, particularly potential new customers.
“We know in the past that customers react [to higher prices], and they react with their feet,” he said.
“It’s important that we allow people to come into the brand, then they have the opportunity to choose.”
Related stories will be right here …
The company made both announcements during its third-quarter earnings call with investors, a quarter that saw the popular Danish bead brand hold the line on sales, sending its stock price up 8 percent in trading Tuesday.
Pandora’s Q3 sales totaled 5.26 billion Danish kroner ($712.4 million), up 1 percent when compared with the third quarter 2021 (3 percent on an organic basis), and a 13 percent increase compared with Q3 2019.
EBIT margin was 18.6 percent, down from 20.2 percent in the third quarter 2021.
In the U.S., Pandora’s sales slowed down as expected due in part to the lack of stimulus money, which supplemented consumers’ disposable income in 2021.
U.S. third-quarter sales sunk 9 percent compared with 2021 (3 percent on an organic basis) but were up 56 percent when compared with 2019.
The U.S. market was the test market for Pandora’s price increases, which were implemented in three stages beginning in the second quarter before going global in early October, CEO Alexander Lacik said on Tuesday’s earnings call.
After several years of cutting back on promotions, Pandora raised prices on items it identified as having a “more favorable elasticity profile;” specifically, gold-plated jewelry as well as jewelry that’s made in collaboration with another brand.
It did not raise prices on its entry-level items or “items of strategic importance.”
When asked by an analyst about the impact of higher prices so far, Lacik said it’s too early to tell.
He did note, however, that while the increases were implemented to drive revenue and profit, the company is wary of alienating customers, particularly potential new customers.
“We know in the past that customers react [to higher prices], and they react with their feet,” he said.
“It’s important that we allow people to come into the brand, then they have the opportunity to choose.”
Analysts also had numerous questions about the U.S. introduction of “Diamonds by Pandora,” the company’s new line of lab-grown diamond jewelry.
Lacik said the line has been “well received” in the market two months into its launch. The company will add a 2-carat lab-grown diamond option ahead of the holiday season.
Diamonds by Pandora is sold at 270 stores across North America, as well as online, representing 3 percent of the company’s share of total business in the market. In physical stores offering the collection, it accounts for 5 percent of business.
Lacik noted the Diamonds by Pandora consumer is so far skewing younger in the U.S. than in the United Kingdom.
Millennials and Gen X were the main customers for Pandora’s lab-grown diamond jewelry in the U.K., while millennials and Gen Z are making up the lion’s share of customers so far in the U.S.
He said millennials and Gen Z seem to be “more aware” of lab-grown diamonds and “much more open” to them than older customers.
Looking ahead to the remainder of the fiscal year, Lacik said the company is sticking with its guidance for the fiscal year, which calls for organic revenue growth of 4-6 percent.
“We don’t see a global recession creeping into our numbers yet.”
He said they do expect some financial impact from the fire that swept through its European distribution center in Hamburg, Germany, on Oct. 30, but expects any impact to be “manageable.”
There were no injuries or inventory damage in the blaze, and the team expects to have operations back to normal levels in the next few weeks.
Between these efforts and support from its distribution center in Thailand, Pandora expects to be “well prepared” with inventory for the holiday season.
In delivering his closing remarks on Tuesday’s call, Lacik noted he’s been asked by multiple journalists about what the future holds in light of the current uncertain macroeconomic and political climate.
He did not have an answer for them.
“I do not have a crystal ball,” he said. “As much as we wish we knew, we don’t know what the future holds for us, but we are ready to go.”
More on Financials
The Latest
Policies & IssuesFeb 20, 2026
Supreme Court Rules Against Most of President Trump’s TariffsIn a 6-3 ruling, the court said the president exceeded his authority when imposing sweeping tariffs under IEEPA.
ColumnistsFeb 20, 2026
Peter Smith: Happiness, Cavemen, and Jewelry SalesSmith encourages salespeople to ask customers questions that elicit the release of oxytocin, the brain’s “feel-good” chemical.
MajorsFeb 20, 2026
Jewelers Vigilance Committee Names Julie Yoakum Board ChairJVC also announced the election of five new board members.
Brought to you by
The MJSA Mentor & Apprenticeship Program: Attracting & Training the Next Generation of Bench JewelersLaunched in 2023, the program will help the passing of knowledge between generations and alleviate the shortage of bench jewelers.
CollectionsFeb 20, 2026
Boucheron’s ‘Faisceaux’ Brooch Heads to V&A MuseumThe brooch, our Piece of the Week, shows the chromatic spectrum through a holographic coating on rock crystal.
Weekly QuizFeb 19, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsFeb 19, 2026
Bailey’s Fine Jewelry Co-Founder ‘Mama Ann’ Bailey Dies at 100Raised in an orphanage, Bailey was 18 when she met her husband, Clyde. They opened their North Carolina jewelry store in 1948.
IndependentsFeb 19, 2026
Material Good Opens Third Location Material Good is celebrating its 10th anniversary as it opens its new store in the Back Bay neighborhood of Boston.
Brought to you by
How Jewelers Can Fight Back Against Cell JammersCriminals are using cell jammers to disable alarms, but new technology like JamAlert™ can stop them.
Events & AwardsFeb 19, 2026
The Original Miami Beach Antique Show Returns in MarchThe show will be held March 26-30 at the Miami Beach Convention Center.
AuctionsFeb 18, 2026
Joanna Carson’s Jewels Head to AuctionThe estate of the model, philanthropist, and ex-wife of Johnny Carson has signed statement jewels up for sale at John Moran Auctioneers.
PodcastsFeb 18, 2026
Episode 2: Jewelry Trends & Does the Red Carpet Matter?Are arm bands poised to make a comeback? Has red-carpet jewelry become boring? Find out on the second episode of the “My Next Question” podcast.
MajorsFeb 18, 2026
Select Jewelry Inks Agreement to Distribute Lightweight Gold JewelryIt will lead distribution in North America for Graziella Braccialini's new gold pieces, which it said are 50 percent lighter.
Policies & IssuesFeb 18, 2026
Community for Ethical Jewelry Looks for Executive DirectorThe organization is seeking a new executive director to lead it into its next phase of strategic growth and industry influence.
Events & AwardsFeb 18, 2026
DCA to Host Gemstone Selling Education Session at IJO EventThe nonprofit will present a live, two-hour introductory course on building confidence when selling colored gemstones.
TrendsFeb 17, 2026
A Bit of Jewelry for the Year of the HorseWestern wear continues to trend in the Year of the Fire Horse and along with it, horse and horseshoe motifs in jewelry.
SourcingFeb 17, 2026
Colored Gemstone Experts Talk Tariffs, Trends in TucsonAlthough the market is robust, tariffs and precious metal prices are impacting the industry, Stuart Robertson and Brecken Branstrator said.
GradingFeb 17, 2026
Dr. George Rossman, Former GIA Governor, Dies at 81Rossman, who advised GIA for more than 50 years, is remembered for his passion and dedication to the field of gemology.
CrimeFeb 13, 2026
JSA Offering $10K Reward in Nancy Guthrie Case Guthrie, the mother of “Today” show host Savannah Guthrie, was abducted just as the Tucson gem shows were starting.
IndependentsFeb 13, 2026
97-Year-Old New Mexico Jewelry Store To CloseButterfield Jewelers in Albuquerque, New Mexico, is preparing to close as members of the Butterfield family head into retirement.
CollectionsFeb 13, 2026
A ‘Rosebud’ Necklace for Valentine’s DayPaul Morelli’s “Rosebud” necklace, our Piece of the Week, uses 18-karat rose, green, and white gold to turn the symbol of love into jewelry.
MajorsFeb 13, 2026
JFC Announces New BeneficiariesThe nonprofit has welcomed four new grantees for 2026.
MajorsFeb 12, 2026
These 8 Saks Fifth Avenue Stores Are ClosingParent company Saks Global is also closing nearly all Saks Off 5th locations, a Neiman Marcus store, and 14 personal styling suites.
CollectionsFeb 12, 2026
British Museum Raises $5M to Keep Jewel Linked to Henry VIII, Katherine of AragonIt is believed the 24-karat heart-shaped enameled pendant was made for an event marking the betrothal of Princess Mary in 1518.
SourcingFeb 12, 2026
‘Cotton Candy’ Necklace, 35-Carat Kunzite Win 2025 ‘Buyer’s Choice’ AwardsThe AGTA Spectrum and Cutting Edge “Buyer’s Choice” award winners were announced at the Spectrum Awards Gala last week.
Events & AwardsFeb 12, 2026
Kering Opens Entries for 2026 Sustainability-Focused AwardThe “Kering Generation Award x Jewelry” returns for its second year with “Second Chance, First Choice” as its theme.
TrendsFeb 11, 2026
Halle Berry’s Retro Engagement Ring Is a Sapphire-Set StunnerSourced by For Future Reference Vintage, the yellow gold ring has a round center stone surrounded by step-cut sapphires.
MajorsFeb 11, 2026
Francesca’s Files for Chapter 11 Bankruptcy AgainThe clothing and accessories chain announced last month it would be closing all of its stores.
