Danish jewellery giant Pandora has trimmed its 2025 profit margin forecast, citing a decline in the U.S. dollar and potential cost pressures from looming U.S. tariffs. The company, which counts the U.S. as its largest market, now expects its earnings before interest and tax (EBIT) margin to be around 24% for the year—down from its previous estimate of approximately 24.5%. However, it maintained its organic growth target of 7–8%.

The charm bracelet maker faces mounting risks if former U.S. President Donald Trump reinstates a 37% “reciprocal” tariff on goods from Thailand, home to Pandora’s two key manufacturing sites. While the tariff has been temporarily paused for 90 days to allow negotiations, Pandora warned of significant cost implications depending on the outcome.

If existing tariffs remain, Pandora estimates a hit of 250 million Danish crowns ($38 million) in 2025 and 300 million crowns annually thereafter. But if the full 37% tariff returns, the impact could rise to 500 million crowns this year and 900 million annually—though lower than the company’s earlier forecast of 1.2 billion crowns annually. The downward revision reflects plans to reroute product shipments directly to Canada and Latin America by 2026, bypassing its current U.S. warehouse in Baltimore.

“In both scenarios, Pandora will consider further price increases,” the company stated, signaling more potential cost burdens for U.S. consumers. The jeweller already implemented a 4% price hike in April, following a 5% increase in October, driven by the surging cost of silver.

Despite the challenging backdrop, Pandora’s first-quarter revenue stood at 7.35 billion Danish crowns ($1.12 billion), slightly above analyst expectations, with organic growth at 7%.

“We are pleased with how we’ve started the year, especially given the very high volatility in the world around us,” said CEO Alexander Lacik. Still, the company acknowledged ongoing economic uncertainty as it continues to invest in marketing and brand strength.