A charm bracelet exhibited at the Pandora store in Copenhagen in Denmark.
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Danish brand of jewelry Pandora He warned against a significant increase in prices at an affordable price of the jewelry industry, if the proposed increases in the tariff of the US President Donald Trump appear after a 90-day break of the White House in April.
CEO Alexander Lacik told CNBC that the current 10% of the US imports were “possible to manage”, but he noticed that if the tariffs return to previously announced “mutual” rates, it would be a change in the game for jewelry producers.
“Most of the jewelers who are in the price segment in which we operate, all import somewhere in Asia. So you can argue if these tariffs remain, it will be more expensive for everyone who play,” said Lacik Charlotte Reed.
“That's why we should expect consumer prices to see a change,” he added.
Pandora, known for popular bracelets and silver jewelry, is strongly dependent on production in Asia, in particular Thailand, but also Vietnam, India and China.
These countries were affected on April 2, President Trump Tariff announcement “Liberation Day” With mutual tariffs from 26% to 46%. This prompted the company the next day to warn against Significant potential of hit for grouping revenues, which was valued by about 1.2 billion Danish Kroner ($ 182 million) a year.
President Trump announced later 90-day pause and a lower 10% tariff rate for most countries except China, although it is currently not clear what rate countries will have to have after early July.
When asked what price level consumers increases if the tariffs remain, the Lacik said that Pandora modeled a number of scenarios, but the final number would probably be conducted in the industry.
“We can all speculate: whether it will be 34 (%) or 40 (%),” he said. “We made many different scenarios. But it doesn't work in isolation, so we have to see a little what the rest of the industry is doing.”
If the tariffs remain at the level of 10%, Lacik said that it is unlikely that the company had to raise prices. However, if it increased to about 30%, for example, “the world is changing.”
“There are different ways of thinking about it, so let's see where it lands,” he said.
The ordinary Silver Pandora bracelet is currently selling for around 75 USD, and the laboratory cultivated in the Diamonds ring laboratory is available from USD 200.
On Wednesday, Pandora maintained its guidelines for 2025 in the amount of 7% to 8% of organic growth, noticing “increased macro uncertainty”. However, he reduced the guidelines for the operational profit margin with 50%base points to about 24%, which Lacik attributed the weaknesses of the American dollar.
The changed guidelines exclude the impact of potential tariffs outside the 90-day pause. However, the company stated that it would provide update of potential influence, because the situation will become more pronounced.
“What we have not changed are the expected changes because of everything that will happen with the tariffs, because when we stand here today, I do not know,” said Lacik.
Pandora's shares were 2.3% to 13:55 time in London.
Pandora excludes US production
Pandora currently employs approximately 8,000 people in the USA, primarily in the chain of stores. Nevertheless, Lacik rejected the perspective of transferring production to the USA – a key strategic purpose of the president's tariff program – saying that it would not have a “financial sense”.
“The cost of the US's work would be completely uncompetitive,” he said. “So if we did it, consumer prices would have to increase significantly.”
Apart from the costs, the General Director of Jewelry said that the country lacks an appropriate skill database for the production of handmade Pandora.
“I employ up to 15,000 craftsmen in Thailand,” he said. “I can't find a talent that he actually has in the US is a craft experience, so at the beginning it is not a matter of costs, but it's about having qualified people who can create jewelry.”
However, more than the costs and labor force Lacik said that it would be reluctant to increase investments in the US due to uncertainty. It appears because companies in other sectors, including pharmaceuticals and cars, undertake to increase a billion dollars to increase production in this country.
“In all this, it is more disturbing that it is not predictable,” said Lacik. “I think they are most people like me who are sitting on the business side.”