A charming bracelet exposed in a Pandora store in Copenhagen, Denmark.
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Danish jewelry brand Pandora Warned against significant price increases in the affordable jewelry industry if the price hikes offered by US President Donald Trump come into play after the 90 -day White House break on the samples announced in April.
CEO Alexander Lacik told CNBC that the current 10% samples on most American imports were “manageable”, but it noted that if the prices were to return to “reciprocal” prices announced above, then it would be a change of game for jewelry manufacturers.
“Most of the jewelers that are in the prices segment where we operate, they all matter somewhere in Asia. So you might have an argument if these prices remain, so it will be more expensive for all those who play,” Lacik told Charlotte Reed.
“Therefore, we have to expect the consumer's price will see a certain change,” he added.
Pandora, known for its popular charm bracelets and silver jewelry, strongly depends on manufacturing in Asia, notably Thailand but also Vietnam, India and China.
These countries were struck on the president of President Trump on April 2 “Liberation Day” price announcement With reciprocal prices ranging from 26% to 46%. This prompted the company the next day to warn Significant potential hit Group income, which he appreciated at around 1.2 billion Danish kroner (182 million dollars) per year.
President Trump then announced a 90 -day break And a rate of rate of 10% for most countries, except China, although it is currently not difficult to know what the rate countries will face once this break expires in early July.
Asked about the level of price increase that consumers could expect if prices remain in place, Lacik said that Pandora had modeled a certain number of scenarios, but that the final figure was likely to be directed by industry.
“We can all speculate: will it be the 34 (%) or 40 (%),” he said. “We have made a number of different scenarios. But we do not operate in isolation, so we have to see what the rest of the industry does.”
If the prices remain at 10%, Lacik said it was unlikely that the company will have to increase prices. However, if they increased to around 30%, for example, “then the world changes”.
“There are different ways to think about it, so let's see where she landed,” he said.
A ordinary sterling pandora bracelet is currently sold at around $ 75, while diamond rings grown in the company's laboratory are available from $ 200.
Pandora maintained its directives for 2025 on Wednesday from 7% to 8% organic growth while noting “high macro uncertainty”. However, it reduced its directives on the operating profit margin by 50 base points to around 24%, which Lacik has attributed to the weakness of the US dollar.
Revised guidelines exclude the impact of potential rates beyond the 90-day break. However, the company said it would provide an update on the potential impact as the situation becomes clearer.
“What we have not changed is expected changes due to what is happening with prices because, as we are here today, I don't know,” said Lacik.
Pandora's shares were exchanged by 2.3% at 1:55 p.m. London time.
Pandora excludes American manufacturing
Pandora currently employs around 8,000 people in the United States, mainly in its store of stores. Nevertheless, Lacik rejected the prospect of moving manufacturing in the United States – a key strategic objective of the president's pricing agenda – claiming that this would have no “financial sense”.
“The cost of American labor would be completely non-competitive,” he said. “So if we did, the consumer's price should increase considerably.”
Aside from the costs, Jewelry's CEO said that the country did not have the appropriate skills base to produce Pandora handmade products.
“I use up to 15,000 craftsmen in Thailand,” he said. “I can't find this quantity of talent that really has this craft experience in the United States, so it's not so much a question of cost to start, it is about having qualified people who can really make jewelry.”
More than costs and labor, however, Lacik said that it would be reluctant to stimulate American investments due to uncertainty. This occurs while companies in other sectors, including pharmaceutical products and cars, have promised billions of dollars to stimulate the manufacturing of the country.
“The most disturbing thing in all of this is that it is not predictable,” said Lacik. “I think it afflicts most people like me who are sitting on the commercial side.”
