Published by Uma Rajagopal
Posted on November 6, 2024
2 min readLast updated: January 29, 2026
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By Isabelle Yr Carlsson and Louise Rasmussen
COPENHAGEN (Reuters) -Pandora said on Wednesday that higher silver and gold prices could hit its 2026 operating profit margin target, sending the Danish company’s shares as much as 7% lower.
Best known for its charm bracelets, with prices ranging from $60 to more than $2,000, has been a rare bright spot among retailers and brands offering affordable luxury items.
Pandora maintained a full-year 2024 operating margin goal of around 25% but said higher commodity prices could present a challenge to its 2026 margin goal of 26%-27%, adding that it was seeking to mitigate at least some of this with more price hikes.
The company did not publish a 2025 margin goal.
The price of silver has soared to around $32 per ounce from $22 in February, while gold has also risen.
Pandora’s operating profit rose to 980 million Danish crowns ($140.87 million) in the third quarter from 920 million a year earlier, slightly below the forecast of 991 million in a company-compiled poll.
Shares in the company were down 5.2% at 0955 GMT, making them one of the worst performers in the pan-European STOXX 600 index.
The fall was likely caused by rising silver prices and the expected pressure on margins, rather than the third-quarter results, DNB Markets analyst Jesper Ingildsen said.
“They increased prices in October, and they’re going to increase prices again at the beginning of the year, is what they’re saying. But nevertheless, it’s probably not enough to fully offset that big increase in silver prices,” he added.
Pandora said it expects full-year organic operating profit growth of 11%-12%, compared to its previous range of 9-12%.
(Reporting by Isabelle Yr Carlsson and Louise Rasmussen; Editing by Stine Jacobsen and Alexander Smith)
Operating profit is the profit a company makes from its core business operations, excluding any income derived from non-operational activities, such as investments or sales of assets.
Profit margin is a financial metric that shows the percentage of revenue that exceeds the costs of goods sold. It indicates how much profit a company makes for every dollar of sales.
Commodity prices refer to the market prices for raw materials or primary goods, such as metals, oil, and agricultural products, which can fluctuate based on supply and demand.
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