Tariffs Will Drive Up Prices for All Contemporary Jewelers, Says Pandora CEO
LONDON — Attention, American shoppers — it's time to stock up on charms, pearls, chains and bangles because if U.S. import tariffs rise this summer, mid-price jewelry is going to get more expensive.
'The reality is, I don't see a scenario where, if there is a 40 percent tariff imposed, people would not raise their prices,' said Pandora's president and chief executive officer Alexander Lacik in an interview following the first-quarter results.
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'Some companies would go bankrupt if they did not raise prices. I think everybody is going to move [on prices] ultimately, and there will be a major, major hike for the U.S. customer,' he added.
With a third of its sales in the U.S. and its manufacturing base in Thailand, Pandora is in the eye of the storm — as are so many other contemporary jewelry companies that manufacture in Asia and sell in the U.S.
'India, Vietnam, Thailand and China are all places where jewelers like us, in the mid-price segment, source pretty much all of their jewelry,' he said.
He believes that tariffs will impact the U.S. consumer more than the jewelry companies themselves.
'If we imagine a situation where [U.S. President Donald Trump] is going to go through with these high tariffs, then the whole sea level rises. You could argue that the relative position between the jewelry brands will be maintained,' he said.
Pandora CEO Alexander Lacik
In its latest results statement on Tuesday, Pandora said it was making contingency plans in the face of all the uncertainty, and would provide the markets with an update 'as the potential impact on the 2025 guidance and 2026 targets becomes clearer.'
Pandora added that it has accelerated certain cost measures, and is preparing to switch some sources of supply. As of early 2026, it will be ready to ship jewelry directly to Canada and Latin America rather than through Pandora's Baltimore, Md., distribution center.
Lacik said Pandora's size, geographic reach and healthy gross margin will give it flexibility if tariffs do come into effect.
'One of the strengths we have is that our gross margin is already operating at a very high level, higher than most of our competitors. That means I have more [scope] to rejig my value equation,' said Lacik, adding that Pandora's size — it operates in more than 70 countries, and had revenue of 31 billion Danish kroner, or $4.31 billion, in 2024 — was an advantage.
In the first three months of 2025, sales rose 7 percent to 7.35 billion Danish kroner, or $1.12 billion. Underlying growth was 6 percent, while new store openings bolstered sales by 4 percent.
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