Latest news with #AlexanderLacik
Forbes
22-05-2025
- Business
- Forbes
Pandora Jewelry Opens First U.S. Flagship Store Despite Tariff Headwinds
Interior Pandora Jewelry Las Vegas flagship store Pandora Jewelry will open its first U.S. flagship store in Las Vegas on Friday, June 6. At 3,000 square feet – about three times larger than the typical Pandora concept store – it is designed for maximum customer impact in keeping with the energy and spectacle of the Las Vegas Strip. The opening comes against the backdrop of Trump's tariffs, which potentially threatens Pandora's vibrancy in the U.S. market. Coming off a strong first quarter with organic revenues up 7% globally to $1.1 billion (DKK $7.35 billion) at current exchange rates, led by 12% growth in the U.S. – its largest and fastest growing market, making up nearly one-third of its $4.8 billion revenues last year – Pandora can't afford sales to slow here if it wants to reach year-end guidance between 7% and 8%. Fortunately, Pandora has room to maneuver despite Thailand, its primary source of supply, being among the hardest-hit countries at a proposed 37% tariff rate before the current 10% moratorium ends in July. Pandora has a remarkable 80% gross profit, compared to 67% for both LVMH and Richemont, and its EBIT margin of 23% last year is right in line with that of the luxury leaders. It also is guiding the EBIT margin to reach 24% by year end, down slightly from 24.5% previously announced due primarily to foreign exchange headwinds. 'Despite the noises around us, we generally like to keep things simple in this company,' CEO Alexander Lacik said in the latest earnings call as he reassured investors, 'Pandora is and will be very profitable as company.' Pandora is planning against two tariff scenarios. The best case is that the 10% tariffs hold after the 90-day pause, excluding China. Under that scenario, Pandora figures an impact of $38 million in 2025 and $46 million in 2026. The 2026 impact will be mitigated by having shipments destined for Canada and Latin America go directly to those countries rather than coming through the U.S. as they currently do. Direct shipments will begin in early 2026. The worst case is that the tariff levels announced in April are resumed, including 37% from Thailand and less important sourcing countries, such as 46% for Vietnam, 26% India, 20% Italy and 145% China. Under this scenario, Pandora expects a $76 million impact in 2025 and $137 million in 2026. Put into context, Pandora generated $1.5 billion in the U.S. last year, so the impacts under the best case scenario are in the 2% to 3% range. The worst case would be harder to manage. However, Reuters reports that Thailand is eager to make a deal, and Pandora, one of the nation's largest employers, has sway through close ties with the Board of Investment in Thailand. Yet, Lacik quipped, 'I don't think that the jewellery category is top of the Trump administration's agenda necessarily.' Increasing prices from their current average around $60 is a possibility, especially if Thailand can't negotiate a better tariff structure. However, Pandora CFO Anders Boyer said, 'We're not at this point in time assuming that we'll do extraordinary price increases.' Such increases would follow a 5% price increase last October and another 4% in April 2025. Should a price increase become necessary, the company said it would take a 'tailored approach,' as it's done in the past. 'If I have a 10% price that I need to take – and I know everybody else needs to take it in the U.S. – I could decide I'm only taking three, but I take three globally and actually increase my local competitiveness in the U.S.,' Lacik said, adding that's not necessarily the game plan. 'But we have some maneuverability simply because we are a global player.' It has even more room to maneuver competitively as Pandora extends beyond a charm-and-bracelet to a full jewelry brand. 'We are super conscious of remaining an accessible brand,' Boyer said in the call. No matter where tariffs end up, Pandora will stay true to is promise of offering hand-crafted fine jewelry at accessible price points that empower customers to express their personal style. While Pandora operates nearly 500 stores in the U.S., the new Las Vegas flagship is designed to shine a new light on the brand and give people a fresh, more immersive way to experience the brand. 'People sometimes take us for granted,' said Luciano Rodembusch, Pandora's general manager of its North America cluster, who joined the company in 2021 from Tiffany & Co. As the first flagship concept store in the U.S., it follows the model of the other flagships in Copenhagen and London, being a full jewelry 'brand house,' yet localized for the specific market. 'We tried to create a very playful flagship in Las Vegas,' he continued. Pandora Jewelry Las Vegas flagship store exterior The store features a three-story façade so passersby can't miss it. Once inside, guests encounter a 'Charm Bar' designed to look like a poker table where guests can touch, feel and try out different charm combinations to create their own piece of jewelry, or as Rodembusch said, 'People can actually play with the jewelry.' In addition to showcasing the brand's full jewelry range, Pandora's lab-grown diamond jewelry gets special emphasis. Las Vegas has the company's top selling LGD jewelry store in the U.S. and globally. Pandora lab-grown diamonds are part of its 'Fuel with More' full-jewelry reporting segment, which grew 22% last year compared to a 2% increase in its core charm-and-bracelet segment. Adding to the experience, the Las Vegas flagship will be the first store to show crafts people at work enameling and hand engraving jewelry. 'Every single piece that Pandora sells is touched by more than 20 human hands. It's important to tell that hand-crafted story and show the level of craftsmanship in each piece,' he explained. Because so many people from all across the U.S. and the world visit Las Vegas, it was selected for the brand's next flagship store. 'We wanted something unique for Las Vegas and something with inspiration. This is an important step for us to help shift the perception of Pandora to a full jewelry brand,' he concluded. See also:
Kuwait Times
21-05-2025
- Business
- Kuwait Times
Global retailers may spread tariff pain by raising prices outside US
LONDON/FRANKFURT: Global retailers including sandal maker Birkenstock and jeweler Pandora are looking at spreading the cost of US tariffs by raising prices across markets to avoid big hikes in the United States that could hurt sales. A global presence gives large retailers an advantage to minimize higher tariff costs in the US. But it is putting central banks on watch as the strategy could fuel inflation in other markets like the European Union and Britain, where consumer prices have finally started to stabilize. Birkenstock's chief financial officer said last week that a 'low-single-digit' price increase globally would be enough to offset the US tariff impact. Pandora CEO Alexander Lacik said the Danish company is debating whether to raise prices globally or more in the US, its biggest market. 'Companies are really thinking about distributing the tariff,' said Markus Goller, partner at consultancy Simon Kucher in Bonn, Germany. 'A manufacturer from outside of the US might say, OK, I cannot increase my prices to the US market that much, so I will do a little increase in the US, and a little increase in Europe, and in other markets.' US President Donald Trump has imposed a blanket tariff of 10 percent on all global imports and is threatening higher so-called 'reciprocal' tariffs on its trading partners. When US behemoth Walmart said it would have to raise prices in response to tariffs, Trump ordered the world's biggest retailer via social media to 'eat the tariffs'. Announcing price increases in non-US markets could be a way for retailers to avoid a similar backlash from Trump. 'Obviously if your products coming into the US are now subject to tariffs, then math says that you have to raise your prices in the US,' said Jean-Pierre Dubé, professor of marketing at the University of Chicago Booth School of Business. 'But you don't want to be accused by the White House of raising prices purely because of US tariffs, so if you can demonstrate that your prices are going up everywhere then... it's kind of a shield.' Retailers could raise prices on certain products or in certain markets where consumers are less price-sensitive, and use that to subsidize other products or countries where price hikes would hurt sales more, said Jason Miller, professor of supply chain management at Michigan State University. 'Maybe a US-only firm has to raise (US) prices by 12 percent. But you, as a global firm, raise prices by 8 percent because you can play with pricing in other markets,' he said. If many multinational retailers do spread the tariff pain, higher inflation could spread even to countries which, like Britain, have already struck trade agreements with the US in a bid to minimize the economic fallout of tariffs. Bank of England Governor Andrew Bailey earlier this month raised the issue of 'global companies that don't make that distinction [on tariff rates] and just say, we're going to impose a pricing solution which goes right across the world irrespective of those differences.' 'I think we do have to watch that carefully,' he said. In the eurozone, inflation was finally gliding towards the European Central Bank's 2 percent target. European companies surveyed by the European Central Bank (ECB) in late March said price growth in the retail sector was subdued. But that was before Trump unveiled his tariff policy on April 2, and later hiked tariffs on Chinese goods to 145 percent. However, the US tariffs on China - lowered last week to 30 percent - have allowed some European retailers to source goods more cheaply than before. Martino Pessina, CEO of Takko Fashion, which sells clothes in 17 European countries, said suppliers in China had offered lower prices as US retailers cancelled orders from factories there, and shipping costs also fell. 'What we don't know is if there's going to be inflation in the US and if that inflation comes to Europe or not,' Pessina said. Some big retailers have in any case ruled out raising prices outside the US. 'There is no reason to raise prices outside the U.S. because of the tariffs,' Adidas CEO Bjorn Gulden told investors after reporting results late last month. 'The discussion we're having on tariffs is only for the US.' ECB executive board member Isabel Schnabel has said the euro zone's inflation rate may initially dip below the central bank's 2 percent target, but that tariffs might prove inflationary further down the road. While every company has its own pricing strategy, economists warn some could take advantage of tariffs to raise prices by more than rising costs, boosting their profits similarly to the inflation surge of 2021-2022 during the pandemic. -- Reuters
GMA Network
20-05-2025
- Business
- GMA Network
Global retailers' tariff strategy risks spreading pain beyond US consumer
LONDON/FRANKFURT —Global retailers including sandal maker Birkenstock BIRK.N and jeweller Pandora are looking at spreading the cost of U.S. tariffs by raising prices across markets to avoid big hikes in the United States that could hurt sales. A global presence gives large retailers an advantage to minimize higher tariff costs in the U.S. But it is putting central banks on watch as the strategy could fuel inflation in other markets like the European Union and Britain, where consumer prices have finally started to stabilise. Birkenstock's chief financial officer said last week that a "low-single-digit" price increase globally would be enough to offset the U.S. tariff impact. Pandora CEO Alexander Lacik said the Danish company is debating whether to raise prices globally or more in the U.S., its biggest market. "Companies are really thinking about distributing the tariff," said Markus Goller, partner at consultancy Simon Kucher in Bonn, Germany. "A manufacturer from outside of the U.S. might say, OK, I cannot increase my prices to the U.S. market that much, so I will do a little increase in the U.S., and a little increase in Europe, and in other markets." U.S. President Donald Trump has imposed a blanket tariff of 10% on all global imports and is threatening higher so-called "reciprocal" tariffs on its trading partners. When U.S. behemoth Walmart WMT.N said it would have to raise prices in response to tariffs, Trump ordered the world's biggest retailer via social media to 'eat the tariffs'. Announcing price increases in non-U.S. markets could be a way for retailers to avoid a similar backlash from Trump. "Obviously if your products coming into the U.S. are now subject to tariffs, then math says that you have to raise your prices in the U.S.," said Jean-Pierre Dubé, professor of marketing at the University of Chicago Booth School of Business. "But you don't want to be accused by the White House of raising prices purely because of U.S. tariffs, so if you can demonstrate that your prices are going up everywhere then... it's kind of a shield." Retailers could raise prices on certain products or in certain markets where consumers are less price-sensitive, and use that to subsidise other products or countries where price hikes would hurt sales more, said Jason Miller, professor of supply chain management at Michigan State University. "Maybe a U.S.-only firm has to raise (U.S.) prices by 12%. But you, as a global firm, raise prices by 8% because you can play with pricing in other markets," he said. If many multinational retailers do spread the tariff pain, higher inflation could spread even to countries which, like Britain, have already struck trade agreements with the U.S. in a bid to minimise the economic fallout of tariffs. Bank of England Governor Andrew Bailey earlier this month raised the issue of "global companies that don't make that distinction [on tariff rates] and just say, we're going to impose a pricing solution which goes right across the world irrespective of those differences." "I think we do have to watch that carefully," he said. Inflation uncertainty In the euro zone, inflation was finally gliding towards the European Central Bank's 2% target. European companies surveyed by the European Central Bank (ECB) in late March said price growth in the retail sector was subdued. But that was before Trump unveiled his tariff policy on April 2, and later hiked tariffs on Chinese goods to 145%. However, the U.S. tariffs on China - lowered last week to 30% - have allowed some European retailers to source goods more cheaply than before. Martino Pessina, CEO of Takko Fashion, which sells clothes in 17 European countries, said suppliers in China had offered lower prices as U.S. retailers cancelled orders from factories there, and shipping costs also fell. "What we don't know is if there's going to be inflation in the U.S. and if that inflation comes to Europe or not," Pessina said. Some big retailers have in any case ruled out raising prices outside the U.S.. "There is no reason to raise prices outside the U.S. because of the tariffs," Adidas CEO Bjorn Gulden told investors after reporting results late last month. "The discussion we're having on tariffs is only for the U.S.." ECB executive board member Isabel Schnabel has said the euro zone's inflation rate may initially dip below the central bank's 2% target, but that tariffs might prove inflationary further down the road. "In order to compensate for the hit to input costs, firms also tend to raise the prices of goods not directly affected by tariffs," Schnabel said in a speech earlier this month. While every company has its own pricing strategy, economists warn some could take advantage of tariffs to raise prices by more than rising costs, boosting their profits similarly to the inflation surge of 2021-2022 during the pandemic. "It will be very difficult for a firm's customers to know what portion of the product's total costs are subject to the tariff, or even the tariff rate that applies. This information asymmetry creates a ripe environment for exploitation. Just as it did during COVID," said Hal Singer, professor of economics at the University of Utah. U.S. consumers' 12-month inflation expectations jumped in April to 6.7%, the highest reading since 1981. And in the euro zone, too, consumers are expecting inflation to rise. "If people are expecting inflation, well then it gives firms a little bit more room to raise prices," said Miller.—Reuters
The Hindu
20-05-2025
- Business
- The Hindu
Global retailers' tariff strategy risks spreading pain beyond U.S. consumer
Global retailers including sandal maker Birkenstock and jeweller Pandora are looking at spreading the cost of U.S. tariffs by raising prices across markets to avoid big hikes in the United States that could hurt sales. A global presence gives large retailers an advantage to minimise higher tariff costs in the U.S. But it is putting central banks on watch as the strategy could fuel inflation in other markets like the European Union and Britain, where consumer prices have finally started to stabilise. Pandora CEO Alexander Lacik said the Danish company is debating whether to raise prices globally or more in the U.S., its biggest market. "Companies are really thinking about distributing the tariff," said Markus Goller, partner at consultancy Simon Kucher in Bonn, Germany. "A manufacturer from outside of the U.S. might say, OK, I cannot increase my prices to the U.S. market that much, so I will do a little increase in the U.S., and a little increase in Europe, and in other markets." U.S. President Donald Trump has imposed a blanket tariff of 10% on all global imports and is threatening higher so-called "reciprocal" tariffs on its trading partners. When U.S. behemoth Walmart said it would have to raise prices in response to tariffs, Trump ordered the world's biggest retailer via social media to 'eat the tariffs'. Announcing price increases in non-U.S. markets could be a way for retailers to avoid a similar backlash from Trump. "Obviously if your products coming into the U.S. are now subject to tariffs, then math says that you have to raise your prices in the U.S.," said Jean-Pierre Dubé, professor of marketing at the University of Chicago Booth School of Business. "But you don't want to be accused by the White House of raising prices purely because of U.S. tariffs, so if you can demonstrate that your prices are going up everywhere then... it's kind of a shield." Retailers could raise prices on certain products or in certain markets where consumers are less price-sensitive, and use that to subsidise other products or countries where price hikes would hurt sales more, said Jason Miller, professor of supply chain management at Michigan State University. "Maybe a U.S.-only firm has to raise (U.S.) prices by 12%. But you, as a global firm, raise prices by 8% because you can play with pricing in other markets," he said. If many multinational retailers do spread the tariff pain, higher inflation could spread even to countries which, like Britain, have already struck trade agreements with the U.S. in a bid to minimise the economic fallout of tariffs. Bank of England Governor Andrew Bailey earlier this month raised the issue of "global companies that don't make that distinction [on tariff rates] and just say, we're going to impose a pricing solution which goes right across the world irrespective of those differences." "I think we do have to watch that carefully," he said. Inflation uncertainty In the euro zone, inflation was finally gliding towards the European Central Bank's 2% target. European companies surveyed by the European Central Bank (ECB) in late March said price growth in the retail sector was subdued. But that was before Trump unveiled his tariff policy on April 2, and later hiked tariffs on Chinese goods to 145%. However, the U.S. tariffs on China - lowered last week to 30% - have allowed some European retailers to source goods more cheaply than before. Martino Pessina, CEO of Takko Fashion, which sells clothes in 17 European countries, said suppliers in China had offered lower prices as U.S. retailers cancelled orders from factories there, and shipping costs also fell. "What we don't know is if there's going to be inflation in the U.S. and if that inflation comes to Europe or not," Mr. Pessina said. Some big retailers have in any case ruled out raising prices outside the U.S.. "There is no reason to raise prices outside the U.S. because of the tariffs," Adidas CEO Bjorn Gulden told investors after reporting results late last month. "The discussion we're having on tariffs is only for the U.S.." ECB executive board member Isabel Schnabel has said the euro zone's inflation rate may initially dip below the central bank's 2% target, but that tariffs might prove inflationary further down the road. "In order to compensate for the hit to input costs, firms also tend to raise the prices of goods not directly affected by tariffs," Ms. Schnabel said in a speech earlier this month. While every company has its own pricing strategy, economists warn some could take advantage of tariffs to raise prices by more than rising costs, boosting their profits similarly to the inflation surge of 2021-2022 during the pandemic. "It will be very difficult for a firm's customers to know what portion of the product's total costs are subject to the tariff, or even the tariff rate that applies. This information asymmetry creates a ripe environment for exploitation. Just as it did during COVID," said Hal Singer, professor of economics at the University of Utah. U.S. consumers' 12-month inflation expectations jumped in April to 6.7%, the highest reading since 1981. And in the euro zone, too, consumers are expecting inflation to rise. "If people are expecting inflation, well then it gives firms a little bit more room to raise prices," said Mr. Miller.
Business of Fashion
20-05-2025
- Business
- Business of Fashion
Global Retailers' Tariff Strategy Risks Spreading Pain Beyond US Consumer
Global retailers including sandal maker Birkenstock and jeweller Pandora are looking at spreading the cost of US tariffs by raising prices across markets to avoid big hikes in the United States that could hurt sales. A global presence gives large retailers an advantage to minimise higher tariff costs in the US, but it is putting central banks on watch as the strategy could fuel inflation in other markets like the European Union and Britain, where consumer prices have finally started to stabilise. Birkenstock's chief financial officer said last week that a 'low-single-digit' price increase globally would be enough to offset the US tariff impact. Pandora CEO Alexander Lacik said the Danish company is debating whether to raise prices globally or more in the US, its biggest market. 'Companies are really thinking about distributing the tariff,' said Markus Goller, partner at consultancy Simon Kucher in Bonn, Germany. 'A manufacturer from outside of the US might say, OK, I cannot increase my prices to the US market that much, so I will do a little increase in the US, and a little increase in Europe, and in other markets.' US President Donald Trump has imposed a blanket tariff of 10 percent on all global imports and is threatening higher so-called 'reciprocal' tariffs on its trading partners. When US behemoth Walmart said it would have to raise prices in response to tariffs, Trump ordered the world's biggest retailer via social media to 'eat the tariffs'. Announcing price increases in non-US markets could be a way for retailers to avoid a similar backlash from Trump. 'Obviously if your products coming into the US are now subject to tariffs, then math says that you have to raise your prices in the US,' said Jean-Pierre Dubé, professor of marketing at the University of Chicago Booth School of Business. 'But you don't want to be accused by the White House of raising prices purely because of US tariffs, so if you can demonstrate that your prices are going up everywhere then... it's kind of a shield.' Retailers could raise prices on certain products or in certain markets where consumers are less price-sensitive, and use that to subsidise other products or countries where price hikes would hurt sales more, said Jason Miller, professor of supply chain management at Michigan State University. 'Maybe a US-only firm has to raise (US) prices by 12 percent. But you, as a global firm, raise prices by 8 percent because you can play with pricing in other markets,' he said. If many multinational retailers do spread the tariff pain, higher inflation could spread even to countries which, like Britain, have already struck trade agreements with the US in a bid to minimise the economic fallout of tariffs. Bank of England governor Andrew Bailey earlier this month raised the issue of 'global companies that don't make that distinction [on tariff rates] and just say, we're going to impose a pricing solution which goes right across the world irrespective of those differences.' 'I think we do have to watch that carefully,' he said. Inflation Uncertainty In the euro zone, inflation was finally gliding towards the European Central Bank's 2 percent target. European companies surveyed by the European Central Bank (ECB) in late March said price growth in the retail sector was subdued. But that was before Trump unveiled his tariff policy on April 2, and later hiked tariffs on Chinese goods to 145 percent. However, the US tariffs on China - lowered last week to 30 percent - have allowed some European retailers to source goods more cheaply than before. Martino Pessina, CEO of Takko Fashion, which sells clothes in 17 European countries, said suppliers in China had offered lower prices as US retailers cancelled orders from factories there, and shipping costs also fell. 'What we don't know is if there's going to be inflation in the US and if that inflation comes to Europe or not,' Pessina said. Some big retailers have in any case ruled out raising prices outside the US. 'There is no reason to raise prices outside the US because of the tariffs,' Adidas CEO Bjorn Gulden told investors after reporting results late last month. 'The discussion we're having on tariffs is only for the US.' ECB executive board member Isabel Schnabel has said the euro zone's inflation rate may initially dip below the central bank's 2 percent target, but that tariffs might prove inflationary further down the road. 'In order to compensate for the hit to input costs, firms also tend to raise the prices of goods not directly affected by tariffs,' Schnabel said in a speech earlier this month. While every company has its own pricing strategy, economists warn some could take advantage of tariffs to raise prices by more than rising costs, boosting their profits similarly to the inflation surge of 2021-2022 during the pandemic. 'It will be very difficult for a firm's customers to know what portion of the product's total costs are subject to the tariff, or even the tariff rate that applies. This information asymmetry creates a ripe environment for exploitation. Just as it did during COVID,' said Hal Singer, professor of economics at the University of Utah. US consumers' 12-month inflation expectations jumped in April to 6.7 percent, the highest reading since 1981. And in the euro zone, too, consumers are expecting inflation to rise. 'If people are expecting inflation, well then it gives firms a little bit more room to raise prices,' said Miller. By Helen Reid, Francesco Canepa, Balazs Koranyi; Editors: Lisa Jucca and Susan Fenton
