Financials

Heading Into Q4, Pandora Raises Prices on Select Items 4%

FinancialsNov 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.

20221108_Pandora Brilliance header.jpg
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 … 

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.” 

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Pope Francis
Policies & IssuesMay 14, 2025
Here’s What Happened to Pope Francis’ Ring

Before Pope Leo XIV was elected, a centuries-old procedure regarding the late pontiff’s ring was followed.

1998 Cosmograph Daytona, Ref.16516 Rolex
AuctionsMay 14, 2025
Custom Rolex Pulled From Sotheby’s Sale

The one-of-a-kind platinum Rolex Cosmograph Daytona was estimated to fetch up to $1.7 million.

Jeweler Constance Polamalu at Bloomstone, a store that specializes in lab-grown diamonds
Lab-GrownMay 14, 2025
State of Diamonds: What’s Next for Lab-Grown Diamonds?

While the product has entrenched itself in the market, retailers and consultants are assessing the next phase of the category’s development.

antique_Vegas_2024_by_headshot_stories_9454.jpg
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the Globe

Gain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.

Surveillance footage Tiffany & Co. Seattle robbery
CrimeMay 14, 2025
Seattle Detectives Seek Public’s Help in Tiffany & Co. Robberies

The police are trying to identify the man suspected of robbing two Tiffany & Co. locations in the area.

Weekly QuizMay 08, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Jeff Corey, new chairperson of the board for the Jewelers Board of Trade
MajorsMay 14, 2025
Jeff Corey Elected Chair of JBT Board

The well-known Maine jeweler takes over for Brian Fleming and will serve a one-year term.

Foundrae Ingot Pendant
Policies & IssuesMay 14, 2025
Foundrae Donates $11K to Ethical Metalsmiths

The donation was the result of the brand’s annual Earth Day Ingot event.

Supplier Spotlight -Recorded-Webinar.png
Brought to you by
Watch: The Winston Red: GIA Examines the Smithsonian’s Newest Addition

Supplier Spotlight Sponsored by GIA

Eiseman Jewels ribbon cutting ceremony
IndependentsMay 13, 2025
Eiseman Jewels’ Renovated Dallas Store Is Bigger and Better

Located in NorthPark Center, the revamped store is nearly 2,000 square feet larger and includes the first Tudor boutique in Dallas.

Diamond Council of America
MajorsMay 13, 2025
DCA Announces New Learning Platform, Course Updates

The nonprofit has made updates to the content in its beginner and advanced jewelry sales courses.

Malyia McNaughton and Elyssa Jenkins-Pérez
MajorsMay 13, 2025
BIJC Launches New Education Fund

BIJC President Malyia McNaughton will shift roles to lead the new foundation, and Elyssa Jenkins-Pérez will succeed her as president.

Harwell Godfrey Snake Giza Ring, Foundrae Mind, Body Soul Story Necklace, Tiffany & Co. Tiffany Titan By Pharrell Williams Bracelet
TrendsMay 13, 2025
State of Jewelry Design: The Top 10 Jewelry Trends of the Past Decade

As a nod to the theme of JCK Las Vegas 2025, “Decades,” National Jeweler took a look back at the top 10 jewelry trends of the past 10 years.

Lightbox’s Reminiscence Poet earrings in 14-karat white gold with lab-grown diamonds
Lab-GrownMay 12, 2025
Lightbox to Go Dark by Summer, De Beers Says

The company plans to halt all consumer-facing activity this summer, while Lightbox factory operations will cease by the end of the year.

Stock image of shipping containers
Policies & IssuesMay 12, 2025
Tariffs on Chinese Imports Temporarily Slashed as U.S.-China Reach Deal

Following weekend negotiations, the tax on Chinese goods imported into the United States will drop by 115 percent for the next 90 days.

Artists’ Jewelry: From Cubism to Pop, the Diane Venet Collection
Events & AwardsMay 12, 2025
Jewelry By Picasso, Dalí on Display at Florida Art Museum

“Artists’ Jewelry: From Cubism to Pop, the Diane Venet Collection” is on view at the Norton Museum of Art through October.

2025 CASE Award Submission Graphic
Events & AwardsMay 12, 2025
CASE Awards Now Accepting Entries For 2025

The deadline to submit is June 16.

Lugano Diamonds store in Greenwich, Connecticut
IndependentsMay 09, 2025
Lugano Diamonds CEO Resigns Amid Internal Investigation

Moti Ferder stepped down Wednesday and will not receive any severance pay, parent company Compass Diversified said.

Coeur Percé Scapular Necklace and Love Baby Locket
CollectionsMay 09, 2025
Pieces of the Week: Marie Lichtenberg’s Collaborations for Mother’s Day

Lichtenberg partnered with luxury platform Mytheresa on two designs honoring the connection between mothers and daughters.

Gemfields emeralds
SourcingMay 09, 2025
Gemfields Resumes Emerald Mining in Zambia

The miner announced plans to recommence open-pit mining at Kagem.

Stock image of a man’s hands in handcuffs
CrimeMay 08, 2025
Former NYC Jewelry Store Employee Arrested in 2017 Choking Death of Boss

Michel Desalles allegedly murdered Omid Gholian inside World of Gold N Diamond using zip ties and then fled the country.

2025 Met Gala jewelry
EditorsMay 08, 2025
5 ‘Superfine’ Met Gala Jewelry Moments

Associate Editor Lauren McLemore shares her favorite looks from a night of style inspired by Black dandyism.

instappraise-1.png
Supplier BulletinMay 08, 2025
Instappraise Introduces Game-Changing Trifold Appraisal Format

Sponsored by Instappraise

Exterior of Margot McKinney Beverly Hills Location
IndependentsMay 08, 2025
Margot McKinney Lands in the U.S. With New Boutique

The brand’s first independent location outside of Australia has opened in Beverly Hills, California.

Cathy Marsh
IndependentsMay 08, 2025
Verragio Announces New Regional Sales Manager

Cathy Marsh will lead the jewelry company’s efforts in the upper Midwest and western United States.

Headshot of Smart Age Solutions CEO Emmanuel Raheb
ColumnistsMay 07, 2025
The Smart Lab: Building a Seasonal Marketing Strategy for Mother’s Day and Beyond

Connecting with your customers throughout the year is key to a successful holiday marketing push.

Gemfields rough emeralds
SourcingMay 07, 2025
Gemfields Says Emerald Sales Improved in Latest Auction

Its commercial-quality emerald sale held last month totaled more than $16 million, up from about $11 million in September 2024.

Logo for “In the Loupe,” Punchmark’s podcast
TechnologyMay 07, 2025
Punchmark’s Latest Podcast Features a Very Special Guest

National Jeweler Editor-in-Chief Michelle Graff joined Michael Burpoe to talk tariffs, consumer confidence, and the sky-high price of gold.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy