Pandora Tries to Dodge $176m Tariff Hit
April 09, 25
(IDEX Online) - Pandora, the Danish jeweler best known for its charm bracelets, say US tariffs will cost it $176m next year, and $103m for the rest of this year, unless it acts to mitigate losses.
The company manufactures the vast majority of its 103m jewelry items annually at two vast factories in Thailand, employing 14,000 people. The US represents 31 per cent of its revenue.
Tariffs on jewelry entering the US from Thailand averaged 2 per cent until President Donald Trump announced the introduction last week of a 36 per cent "reciprocal tariff", based on the trade deficit between the two countries.
Pandora is the world's largest jewelry brand, with 6,800 retail outlets and 37,000 employees.
It said in a statement that it would find a workaround for the $37m of its potential tariff losses linked to goods eventually sold in Canada and Latin America but distributed via the US.
It also said it could hike prices and change its supply chain set-up to address the impact of the tariffs.
The Thai government has indicated it is ready to engage in constructive dialogue with the US administration and Pandora says it will provide a potential update on the 2025 EBIT-margin guidance as the situation becomes clearer.
In February Pandora reported 13 per cent organic growth for 2024, with revenue at $4.42bn.
Pic courtesy Pandora.