12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015
CVR NO. 2 8 5 0 5 1 1 6 HAVNEHOLMEN 17-19 1561 COPENHAGEN V WWW.PANDORAGROUP.COM
INTERIM FINANCIAL REPORT
Q2 2026
13 AUGUST 2026 • COMPANY ANNOUNCEMENT XXXX • INTERIM REPORT Q2 2026 • CONTENTS
PAGE 2 OF 43
Classification: Pandora Secret
CONTENTS
HIGHLIGHTS
3
EQUITY STORY
4
EXECUTIVE SUMMARY
5
FINANCIAL HIGHLIGHTS
BUSINESS UPDATE
6
BUSINESS UPDATE
11
REVENUE REVIEW
15
PROFITABILITY
18
CASH FLOW & BALANCE SHEET
20
24
FINANCIAL GUIDANCE
CAPITAL STRUCTURE POLICY
AND CASH DISTRIBUTION
25
SUSTAINABILITY
26
OTHER EVENTS
28
CONTACT
FINANCIAL STATEMENTS
29
FINANCIAL STATEMENTS
33
ACCOUNTING NOTES
43
DISCLAIMER
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • EQUITY STORY
PAGE 3 OF 43
EQUITY STORY
A STRONG BRAND WITH VAST GROWTH OPPORTUNITIES
A STRONG BRAND IN AN ATTRACTIVE CATEGORY
• Pandora stands as the sole global brand in accessible jewellery,
owning the distinct position of “jewellery with a meaning” with
consumers worldwide.
• The jewellery market has historically outpaced GDP growth and remains
highly fragmented, with global brands expected to grow faster than the
overall market.
• Pandora holds the highest brand awareness in the industry.
AN ASSET-LIGHT, FULLY INTEGRATED BUSINESS MODEL
• Our asset-light business model benefits from a unique fully vertically
integrated ecosystem - from design and crafting to a vast distribution
network.
• This integration provides unrivalled scale and, together with our brand
strength, drives our strong margin profile and high returns.
UNIQUE GROWTH OPPORTUNITIES
• There are numerous untapped growth opportunities within our existing
business model across various geographies, jewellery categories and
designs.
• The essence of our growth strategy is for Pandora to become the most
desirable, accessible jewellery brand and leverage our existing
infrastructure.
A RESILIENT BUSINESS COMMITTED TO SUSTAINABILITY
• Sustainability is an integral part of our business, and we are progressing
towards some of the most ambitious sustainability targets in the
industry, spearheading the use of recycled silver and gold and lab-grown
diamonds.
FINANCIAL AMBITION*
• We expect to outgrow the jewellery market, targeting annual high
single-digit organic growth, while maintaining best-in-class profitability.
• We have ambitions to generate significant free cash flows, which, in line
with our historic approach, will be fully returned to shareholders.
* This was based on a silver price of approximately USD 24/oz at the Capital Markets Day in 2023. Silver prices have increased
substantially since then. Pandora has previously announced that a material part of the jewellery will be converted from crafting in
silver to platinum-plated during the next few years. This will offset a material part of the commodity headwind and thereby support
the financial algorithm.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • EXECUTIVE SUMMARY
PAGE 4 OF 43
EXECUTIVE SUMMARY
PANDORA DELIVERS 3% ORGANIC GROWTH IN Q2 - GUIDANCE
UPGRADED
Q2 2026 highlights
• Pandora delivered organic growth of 3% with LFL growth of 1% and network expansion & other of 2%.
• LFL in North America was -1%, EMEA remained broadly stable at -2%, whilst Asia-Pacific and Latin
America saw continued strong growth at 10% and 18%, respectively.
• LFL growth in the Core was -1%, whilst Fuel with More saw an improvement to 6% LFL growth.
• The gross margin ended at 80.5%. One-off income from a partial refund of Pandora’s US IEEPA tariff
claim positively impacted the gross margin by 230bp. Excluding this, the gross margin remained solid
at 78.2%, down 110bp Y/Y with efficiencies and promotional discipline offsetting a large proportion of
the 270bp external headwinds related to the continuing tariffs, commodities and foreign exchange.
• The Q2 EBIT margin landed at 20.3%, +210bp Y/Y, benefitting by 250bp from above-mentioned one-
off tariff impact. Excluding this, the margin was broadly flat Y/Y despite 300bp of external headwinds.
Strategic highlights
• As previously communicated, Pandora is course-correcting execution in selected areas. This includes a
greater focus on design as a key driver of desirability, evolving the marketing model with stronger local
and cultural relevance and calibrating the growth engine by market.
• Pandora’s new spring theme, “Garden of Dreams”, saw products curated across collections and brought
design led storytelling to life through nature inspired motifs. The theme was supported by marketing
campaigns and more focus on in-store merchandising. The activation contributed to growth in Timeless.
• In July, Pandora launched Pandora Wonders, the multi-year brand platform aimed at driving desirability
and cultural relevance through distinctive design, craftmanship and the reinterpretation of iconic
jewellery materials. The first chapter, co-created with stylist Harry Lambert, was launched in Paris during
Haute Couture week and has driven significant brand buzz.
• The pilot test of a limited range of platinum-plated jewellery was successfully initiated in Netherlands
in July. This followed more than a year of development and consumer testing. The next step is a broader
test of selected designs across markets during Q4 2026, before scaling the rollout in 2027.
2026 guidance and current trading
• The guidance for 2026 is upgraded to “0-3% organic growth” (versus “-1% to 2%” previously) and an
EBIT margin of “22-23%” (versus “21-22%” previously). The new EBIT margin guidance reflects the
expected one-off income from the IEEPA tariff claim.
• Current trading in Q3 2026 shows LFL growth at mid-single digit levels. This was helped by phasing of
commercial activities.
Berta de Pablos-Barbier, President and CEO of Pandora, says:
”We are making progress in re-energising Pandora’s growth engine. Q2 delivered 1% LFL growth, with
encouraging early signs from the actions we are taking. There is more work ahead, but we are moving in
the right direction and raising our 2026 guidance for both growth and profitability.”
DKK million
Q2 2026
Q2 2025
H1 2026
H1 2025
FY 2025
FY 2026
guidance
Revenue
7,219
7,075
14,328
14,421
32,549
Organic growth
3%
8%
2%
7%
6%
0% to 3%
Like-for-Like, %
1%
3%
0%
4%
2%
Operating profit (EBIT)
1,463
1,287
2,951
2,928
7,783
EBIT margin, %
20.3%
18.2%
20.6%
20.3%
23.9%
22-23%
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • FINANCIAL HIGHLIGHTS
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FINANCIAL HIGHLIGHTS
DKK million
Q2 2026
Q2 2025
H1 2026
H1 2025
FY 2025
FINANCIAL HIGHLIGHTS
Revenue
7,219
7,075
14,328
14,421
32,549
Organic growth, %
3%
8%
2%
7%
6%
Like-for-like, %
1%
3%
0%
4%
2%
Earnings before interest, tax, depreciation and amortisation
(EBITDA)
2,133
1,911
4,279
4,175
10,316
Operating profit (EBIT)
1,463
1,287
2,951
2,928
7,783
EBIT margin, %
20.3%
18.2%
20.6%
20.3%
23.9%
Net financials
-291
-224
-515
-461
-870
Net profit for the period
875
803
1,817
1,904
5,241
FINANCIAL RATIOS
Revenue growth, DKK, %
2%
4%
-1%
6%
3%
Revenue growth, local currency, %
3%
9%
3%
8%
6%
Gross margin, %
80.5%
79.3%
80.0%
79.9%
79.1%
EBITDA margin, %
29.5%
27.0%
29.9%
29.0%
31.7%
EBIT margin, %
20.3%
18.2%
20.6%
20.3%
23.9%
Effective tax rate, %
25.4%
24.5%
25.4%
22.8%
24.2%
Equity ratio, %
15%
13%
15%
13%
18%
NIBD to EBITDA, x
1.5
1.5
1.5
1.5
1.3
Return on invested capital (ROIC), %
1
39%
44%
39%
44%
41%
Cash conversion incl. lease payments, %
101%
74%
30%
6%
65%
Net working capital, % of last 12 months’ revenue
2.2%
4.7%
2.2%
4.7%
4.1%
Net working capital excl. derivatives, % of last 12 months’ revenue
2
3.1%
3.4%
3.1%
3.4%
-1.1%
Capital expenditure, % of revenue
7.8%
8.5%
6.3%
7.0%
6.0%
STOCK RATIOS
Total payout ratio (incl. share buyback), %
-
110%
92%
182%
114%
Dividend per share, proposed, DKK
-
-
-
-
22
Dividend per share, paid, DKK
-
-
22
20
20
Earnings per share, basic, DKK
11.7
10.3
24.3
24.4
68.1
Earnings per share, diluted, DKK
11.7
10.3
24.3
24.4
67.9
CONSOLIDATED BALANCE SHEET
Total assets
29,232
27,008
29,232
27,008
29,603
Invested capital
19,948
18,850
19,948
18,850
19,001
Net working capital
718
1,513
718
1,513
1,336
Net working capital excl. derivatives
2
996
1,112
996
1,112
-352
Net interest-bearing debt (NIBD)
15,643
15,297
15,643
15,297
13,719
Equity
4,305
3,550
4,305
3,550
5,282
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows from operating activities
1,831
1,388
1,872
1,099
7,361
Capital expenditure, total
563
600
899
1,010
1,943
Capital expenditure, property, plant and equipment
441
464
704
774
1,483
Free cash flows incl. lease payments
1,479
955
890
173
5,022
1
Last 12 months’ EBIT in % of last 12 months’ average invested capital.
2
Net working capital excluding unrealised derivatives measured at fair value.
For definitions of the performance measures used by Pandora, see note 5.6 Financial definitions to the
consolidated financial statements in the Annual Report 2025.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • BUSINESS UPDATE
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BUSINESS UPDATE
CONTINUED PROGRESS ON RE-ENERGISING THE GROWTH ENGINE
At the Q4 2025 results, Pandora confirmed its vision to become the most desirable, accessible jewellery
brand, supported by significant long-term headroom for growth across categories, aesthetics, and
geographies. Pandora is supported by strong underlying foundations, including healthy brand
fundamentals, solid collections, and a fully integrated value chain spanning upstream and downstream
activities, providing a competitive advantage in speed, quality, and scale.
To fully capture these opportunities and to evolve Pandora’s growth engine for the next strategic phase,
Pandora has identified clear, actionable insights which have been translated into defined strategic priorities,
with targeted actions under way.
The new strategic priorities include 1) strengthen design-led product leadership to drive scalable growth
– this includes re-energising core collections with clearer creative direction and more distinctive design
expressions; 2) evolving the marketing model – complementing the reach-driven model with greater focus
on brand relevance and earned media impact; 3) adapting the go-to-market model in markets with a higher
penetration of the Core segment whilst scaling proven growth drivers in less penetrated markets – further
differentiating execution based on market maturity.
We are already seeing encouraging proof points in selected collections and markets, but the initiatives are
not yet fully scaled. The impact will build as we roll them out more broadly.
Pandora remains mindful of recent geopolitical events and the elevated macroeconomic uncertainty which
could further impact the consumer backdrop. Nonetheless, Pandora is executing at pace on the strategic
priorities outlined above. Pandora expects these initiatives to broaden the consumer base and deepen
engagement with the brand, thereby driving stronger LFL growth.
Q2 ORGANIC GROWTH AT 3%, STRONG PROFITABILITY
In Q2 2026, Pandora delivered 3% organic growth and maintained strong profitability with an EBIT margin
of 20.3%. The organic growth of 3% comprised of LFL growth of 1% and network expansion & other of 2%.
The EBIT margin of 20.3%, up 210bp Y/Y, was supported by a strong gross margin of 80.5%, up 120bp Y/Y.
The gross and EBIT margin benefitted from a one-off impact of 230bp and 250bp, respectively, reflecting
one-off income from a partial refund of Pandora’s US IEEPA tariff claim (all or the majority of the remaining
one-off income is expected during the second half of 2026. Please refer to the guidance section for further
details).
Regionally, LFL in EMEA landed at -2% where strong growth in Spain, Poland and Portugal continued to be
offset by ongoing weakness in Italy and the UK, albeit the UK showed some sequential improvement. LFL
in North America was broadly stable in Q2 2026 at -1% with good in-store execution helping navigate the
low consumer sentiment in the region which still impacts traffic. LFL in the US market was 0%. Finally, LFL
in Asia-Pacific and Latin America was 10% and 18%, respectively. In Latin America, performance continued
to be driven by the decisive Q1 roll-out across the region of a new go-to-market model, including a broad-
based price repositioning, alongside the implementation of Pandora’s evolved marketing approach. In Asia-
Pacific, growth continued to benefit from strong growth in Japan where Pandora is in the early stages of
building its brand presence through increased marketing spend and roll-out of its reach and relevance
marketing model.
By channel, the Pandora-operated physical network saw 1% LFL growth, while online was flat in Q2 2026.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • BUSINESS UPDATE
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TAKING INITIAL STEPS ON PRODUCT LEADERSHIP – “GARDEN OF DREAMS” CURATED COLLECTION
Pandora is strengthening how design-led product leadership drives growth across the Core and Fuel with
More segments.
Pandora’s creative newness efforts have historically been concentrated in a narrow aesthetic space, over
indexing on Playful jewellery. However, LFL growth has increasingly been driven by under-represented
aesthetics such as Sparkling, Bold and Organic expressions. The new mission is two-fold: 1) introducing
increasingly distinctive and contemporary designs within Pandora’s stronghold in the Playful aesthetic; and
2) scaling the impact of new design expressions in sizeable, underrepresented aesthetics where Pandora
already plays, maximizing existing platforms rather than entering new territories. This will be accompanied
by introduction of new materials while significantly enhancing in-store merchandising through more
curated collections and a clearer layout of Pandora’s design universe.
Q2 2026 provided an early proof point of Pandora’s evolving approach to product leadership through the
Garden of Dreams collection. Bringing together products from across Pandora’s portfolio around a
cohesive nature-inspired theme, the collection showcased how stronger curation, more distinctive design
expressions and design-led storytelling can create relevance across categories inspiring consumers to see
and wear Pandora in new ways and supporting growth beyond Pandora’s traditional category strengths.
New designs contributed to improved momentum in Fuel with More, where LFL growth accelerated to 6%.
In the Core segment, LFL growth was -1%; however, performance continued to benefit from Pandora ME,
where Talisman, operating within the Bold aesthetic, delivered solid growth. Within Playful, Pandora’s
largest aesthetic in the Core segment, initiatives are under way to increase distinctiveness and unlock future
growth opportunities.
DRIVING CULTURAL RELEVANCE: INTRODUCING PANDORA WONDERS
Since the inception of the Phoenix strategy, Pandora has built strong brand foundations, achieving industry-
leading awareness and broad, cross-generational appeal across many markets. Expanding brand reach
remains a core priority, particularly in lower-penetration markets such as North America and parts of Asia,
where traditional brand-building channels continue to play a critical role in driving customer acquisition.
As markets mature and penetration increases, Pandora will complement this reach-driven model with a
greater focus on driving brand relevance and earned media impact. In highly penetrated markets within
Pandora’s Core segment, incremental growth increasingly depends on design-led storytelling, locally
relevant marketing and social and engagement-driven channels. Accordingly, Pandora will rebalance
marketing investment towards channels that more effectively amplify earned media and cultural relevance
while continuing to deploy high-impact and efficient video campaigns to build emotional resonance at
scale. More distinctive design, stronger storytelling and local activation are already generating encouraging
proof points, but the impact will build as we bring the model to our core aesthetics.
In Q2 2026, Pandora supported the “Garden of Dreams” collection through locally relevant marketing
activations across multiple markets. Building on the success of the collection, the campaign generated
strong consumer engagement and provided an early example of how more distinctive design storytelling
and local relevance can amplify brand impact beyond paid reach alone.
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In July, Pandora launched Pandora Wonders in the seven markets of Italy, UK, Australia, Germany, France,
Canada and the US - a multi-year initiative celebrating iconic jewellery materials through craftsmanship,
design and collaboration. Each year, Pandora will collaborate with a leading creative talent to reinterpret a
signature material through the lens of contemporary culture, creating distinctive collections and
experiences that inspire. The first chapter has been co-created with Harry Lambert and explores the beauty
of freshwater pearls from a modern perspective. Lambert is widely recognised for styling cultural icons
including Harry Styles, Emma Corrin and Alexander Skarsgård. The collection features limited-edition
dangle charms crafted from one-of-a-kind freshwater baroque pearls. To preserve the individuality of every
pearl, Pandora’s highly skilled craftspeople use a precise micro-piercing technique before hand-setting
each piece and finishing it with 14K gold plating.
The initial response to Pandora Wonders has been encouraging, generating significant brand buzz and
strong earned media coverage. Early engagement with the limited collection has been particularly strong
among new customers and has expanded Pandora’s presence across influential cultural and social channels.
While it is still early, the launch supports our confidence that combining distinctive design, craftsmanship
and culturally relevant storytelling can strengthen brand relevance and drive customer engagement over
time.
REVENUE BY SEGMENT
DKK million
Q2 2026
Q2 2025
Like-
for-Like
Share of
Revenue
Core
5,362
5,314
-1%
74%
Fuel with more
1,857
1,761
6%
26%
Total revenue
7,219
7,075
1%
100%
DKK million
H1 2026
H1 2025
Like-
for-Like
Share of
Revenue
Core
10,473
10,612
-1%
73%
Fuel with more
3,855
3,810
3%
27%
Total revenue
14,328
14,421
0%
100%
GROWTH ENGINE CALIBRATED BY MARKET
As outlined previously, Pandora is calibrating its growth engines according to market maturity and
penetration levels, scaling proven growth drivers in less penetrated markets while adopting a more locally
relevant and differentiated approach in more mature markets.
During Q2 2026, Pandora took initial steps to implement this differentiated approach, with the most
material product, marketing and operating model initiatives expected to contribute progressively over
time. In Italy, Pandora continued the pilot testing of a refreshed go-to-market approach for highly
penetrated markets. The pilot includes reallocating marketing investment from traditional video towards
social media, influencers and locally relevant activations, supported by curated product offerings, an
elevated store experience and styling-led content in 41 pilot stores in Italy. A key milestone was reached
on 26 June with the opening of the Milan flagship store, which coincided with the launch of Pandora Lab-
Grown Diamonds in the market. Elsewhere, Pandora continued to build on its strong brand positioning in
Spain with the opening of a flagship store in Barcelona. The Barcelona store is located on the fashion avenue
Passeig de Gracia next to Gaudí’s Casa Batlló and has seen strong consumer engagement since opening. It
spans 175 square meters and is inspired by the city’s architecture and craftsmanship. The space features
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • BUSINESS UPDATE
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four-metre-high ceilings, softly curved clay-plastered walls echoing Gaudí’s style, and locally sourced
materials including terrazzo stone flooring and pine wood detail.
The flagship serves as a showcase for Pandora’s evolving approach to consumer experience, combining
curated merchandising, elevated storytelling and local relevance in one destination.
A MULTI-MATERIAL JEWELLERY BRAND: PILOT TEST OF PLATINUM-PLATED JEWELLERY INITIATED
Pandora is continuing its evolution into a multi-material jewellery brand, complementing its silver heritage
with a new platinum-plated offering built on Pandora’s signature alloy. The transition of a part of the
jewellery collections is designed to protect Pandora’s brand DNA of hand-crafted, accessible jewellery
whilst structurally reducing exposure to elevated silver prices over time.
The transition also builds on one of Pandora’s core strengths: its ability to innovate and industrialise new
crafting processes at scale while maintaining quality, accessibility and operational efficiency.
The transition is progressing in line with the timeline previously communicated. In July 2026, Pandora
reached an important milestone with the initial pilot test of a limited range of platinum-plated jewellery
across stores and online in the Netherlands. Early consumer reception has been encouraging and in line
with expectations. Further in-market testing of a limited range will be conducted during Q4 2026. The
transition timeline remains unchanged, disciplined and phased.
• 2025-2026: Consumer research, testing and validation of platinum plating. July onwards: pilot test
in the Netherlands of a limited range. Late 2026: extended pilot of a limited range
• 2027: Pandora transitions around half of its relevant silver assortment to platinum-plated
• 2028: Pandora transitions the remaining part of its relevant assortment to platinum-plated.
Production carried out largely in-house
• 2029 and beyond: Further optimisation of crafting processes and further material innovation to
support margins
Whilst prices of silver, gold and platinum have eased somewhat in recent months, they remain materially
above historical levels and the shift to platinum plating therefore remains a key structural lever to reduce
commodity exposure (and thereby margin volatility) over time.
Pandora has previously communicated plans to deliver an EBIT margin of at least 12% in 2027 and at least
14% when excluding one-off costs related to the transition. This was based on a silver spot price of USD
82/oz. Pandora’s 2027 P&L is now 90-100% hedged on silver at a price of around USD 65/oz. On an isolated
basis and all other things equal, this is an upside of around 200bp vs prior assumptions. During the next
months, the strategic, commercial and financial plans for 2027 are being firmed up and Pandora will provide
a high level update on the 2027 EBIT margin direction in connection with the strategic update on 4
November 2026 (Q3 announcement).
As previously communicated, the transition of the remaining targeted assortment alongside ongoing
innovation and optimisation of crafting methods in platinum is expected to further reduce Pandora’s
exposure to silver prices over time. As such, while the lower silver price provides a meaningful benefit to
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the 2027 margin, the impact on Pandora’s mid-term EBIT margin ambition of above 21% is therefore
expected to be limited.
Pandora will provide an update on the platinum-plated jewellery transition and margins in connection with
the strategic update alongside the Q3 2026 results.
The one-off CAPEX of around DKK 600 million related to the platinum-plating capacity build-up remains
unchanged, with approximately DKK 400 million still expected to be incurred in 2026.
CFO TRANSITION ANNOUNCED
On 6 August 2026 Pandora announced that Chief Financial Officer Anders Boyer will retire from executive
roles on 30 November 2026 after more than 14 years with the company. He will be succeeded by Paulo
Garcia, who joins Pandora on 1 October 2026 and assumes the role of CFO on 1 December 2026.
Paulo Garcia is a Portuguese national with 25 years of international executive experience across leading
consumer goods companies in Europe and Latin America. He joins from a position as CFO of Walmart
Mexico & Central America (Walmex), a separately listed subsidiary with USD 50 billion in revenue and
240,000 employees, and has previously held CFO roles for Europe & Indonesia at Ahold Delhaize and for
Unilever. His appointment follows robust succession planning by the Board in close collaboration with CEO
Berta de Pablos-Barbier.
Anders Boyer joined Pandora’s Board of Directors in 2012 and was appointed CFO in 2018. Together with
former CEO Alexander Lacik, he led the company’s financial turnaround in 2019-20 and helped establish
the Phoenix growth strategy in 2021. During his tenure, Pandora’s revenue has grown by 389% and total
shareholder return has exceeded 2,000%, and he was recognised as CFO of the Year in Denmark in 2021.
To ensure a seamless transition, Anders Boyer will remain with the company until 31 March 2027 to support
the handover. The leadership transition ensures continuity in financial stewardship and strategic focus and
positions Pandora for sustained growth in the years ahead.
STRATEGIC UPDATE ALONGSIDE Q3 2026 RESULTS ON 4 NOVEMBER 2026
After making progress under the Phoenix strategy since 2021, Pandora is actively preparing for its next
strategic cycle to position the company for long-term profitable growth. Whilst many initiatives have
already been defined and outlined, Pandora will expand on these topics at a broader, virtual strategic
update in conjunction with the Q3 2026 results on 4 November 2026.
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REVENUE REVIEW
3% ORGANIC GROWTH IN Q2 2026
Pandora delivered organic growth of 3% in Q2 2026, comprising of 1% LFL growth, network expansion of
4% and a drag of 2% from sell-in and other (reflecting some lower replenishment from partners and some
phasing between quarters). Reported revenue reached DKK 7.2 billion.
LFL in the Core segment was -1%, held back by continued softness in Moments, where more distinctive
design is a clear focus to re-ignite growth, partly offset by Pandora ME and the continued strength of
Talisman. Fuel with more improved to 6% LFL growth, led by an acceleration in Timeless. Where the design
initiatives have been implemented, newness is showing early traction, with recently launched collections
outperforming the base assortment.
Pandora continues to exploit the white space opportunities globally, with network expansion contributing
4% to revenue growth in the quarter. During the past 12 months, Pandora has added net 23 concept stores
(including net 95 closures in China) and closed net 17 Pandora operated shop-in-shops (including net 47
closures in Brazil and China).
Pandora did not acquire any stores from partners during the quarter. The negligible revenue contribution
from forward integration relates to stores taken over in the second quarter of 2025.
Foreign exchange rates represented a 0.9% headwind in the quarter equivalent to DKK 0.1 billion revenue.
The headwind is mostly driven by the depreciation of USD and TRY, with an offset from AUD and MXN.
Q2 2026 GROWTH COMPOSITION VS. Q2 2025
Growth in pp (approximation), revenue in DKK million
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REVIEW OF REVENUE BY REGION
STABLE LFL IN A CHALLENGING CONSUMER ENVIRONMENT
Pandora delivered organic growth of 3% in Q2 2026, with LFL growth of 1% and network expansion & other
contributing 2%. Performance remained mixed by region, reflecting both the external consumer backdrop
and the different stages of execution across markets. North America overall was broadly stable while the
important US market improved sequentially, EMEA remained broadly stable as well but still subdued, while
Latin America and Asia-Pacific continued to deliver strong growth.
Overall, the quarter reinforced the strategic direction outlined earlier this year. In markets, where
penetration within the Core segment is greater, the performance continues to underline the need for
stronger product distinctiveness, local relevance and sharper execution. In other markets, growth continues
to show the opportunity to scale what already works, supported by disciplined commercial execution,
selective network expansion and locally relevant marketing to sustain brand momentum.
EMEA
EMEA delivered -2% LFL in Q2 2026. Continued growth in markets such as Spain, Portugal and Poland was
offset by ongoing softness in Italy, France, Germany and the UK. The regional performance reflects a
challenging consumer environment, but also the necessary transition underway as Pandora evolves its
growth model and sharpens execution, not least in markets with a higher penetration in the Core segment.
Country highlights:
• Spain & Portugal: Continued to deliver strong performance, supported by local relevance, strong
execution and effective customer activation.
• Italy: LFL remained negative, partly reflecting lower promotional activity and continued traffic
pressure. However, the market is progressing well at the early stages of the pilot initiatives across
marketing, product curation and store experience.
• UK: Performance remained challenged in the UK, reflecting weak consumer sentiment and the need
to rebuild product-driven brand heat and local relevance over time. This process is already taking
place with several local activations being implemented to drive brand heat. This is also being
accompanied by a promotional detox in the country.
NORTH AMERICA
North America was broadly stable in Q2 2026, with LFL at -1%, while the US delivered 0% LFL. The external
environment remained challenging, with low consumer sentiment continuing to weigh on traffic,
particularly among mid- to lower-income consumers. Against this backdrop, Pandora continued to focus
on brand heat, product relevance and execution across stores and online.
In Q2, Pandora continued to increase brand visibility through selected high-impact activations. Alongside
its presence at the Met Gala with Odessa A’zion, the region leveraged key seasonal moments such as
Mother’s Day and continued to generate visibility through influencer partnerships, celebrity advocacy and
earned media placements. Collectively, these initiatives helped strengthen cultural relevance and earned
media impact, complementing the continued focus on product newness and execution in the region.
LATIN AMERICA & ASIA-PACIFIC
Latin America continued to deliver strong growth in Q2 2026. Performance remained supported by the
revised go-to-market model introduced earlier in the year, including a broad-based price repositioning and
a more locally relevant marketing approach.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • REVENUE REVIEW
PAGE 13 OF 43
Asia-Pacific also delivered strong LFL growth in Q2 2026. Japan remained the key driver and is a clear
example of the effectiveness of Pandora’s calibrated growth model in markets where brand penetration
remains lower: scaling what already works, while supporting the growth engine with relevant local
marketing, disciplined execution and selective network expansion.
QUARTERLY REVENUE DEVELOPMENT BY REGION
DKK million
Q2 2026
Q2 2025
Like-for-like
Organic growth
Share of revenue
EMEA
3,338
3,441
-2%
-1%
47%
North America
2,697
2,673
-1%
3%
37%
Latin America
513
405
18%
21%
7%
Asia-Pacific
621
556
10%
10%
9%
Total revenue
1
7,219
7,075
1%
3%
100%
YEAR-TO-DATE REVENUE DEVELOPMENT BY REGION
DKK million
H1 2026
H1 2025
Like-for-like
Organic growth
Share of revenue
EMEA
6,953
7,085
-2%
0%
49%
North America
5,124
5,344
-1%
1%
36%
Latin America
1,021
868
12%
17%
7%
Asia-Pacific
1,229
1,123
11%
11%
9%
Total revenue
1
14,328
14,421
0%
2%
100%
1
As of Q4 2025, geographical revenue is presented under four regions comprising EMEA (Europe, Middle East & Africa), North America, Latin America,
and Asia-Pacific. Information on key market level will be available through Q2 2026 in the appendix, which is published quarterly.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • REVENUE REVIEW
PAGE 14 OF 43
REVIEW OF NETWORK DEVELOPMENT
NETWORK DEVELOPMENT PROGRESSING AS PLANNED
During the second quarter of 2026, Pandora continued to expand and optimise its network in line with its
plans, opening net 15 concept stores and closing net 2 Pandora operated shop-in-shops. This is in line with
expectations and reflects the phasing of new openings this year. Over the past 12 months, Pandora has
added net 23 concept stores, despite net 95 closures in China during the period, and closed net 17 Pandora
operated shop-in-shops, including net 47 closures across Brazil and China.
The store openings are relatively broad-based across North America, EMEA and Asia-Pacific (ex-China).
Network expansion added 4% to organic growth in Q2, while the contribution from forward integration was
negligible.
Network expansion is low risk, while being accretive to margins and returns. As such, Pandora continues to
expand its network, targeting 50–75 net concept store openings, including approximately 25 closures in
China. Pandora also expects to close a net 25–50 Pandora‑operated shop‑in‑shops, including around 50
closures across Brazil and China. Closures in China and Brazil are expected to have a limited impact on
organic growth. Overall, the organic growth contribution from network expansion in FY 2026 is expected
to be around 3% (previously 2%).
STORE NETWORK
Number of points of sale
1
Q2 2026
Q1 2026
Q2 2025
Growth
Q2 2026
/Q1 2026
Growth
Q2 2026
/Q2 2025
Concept stores
2,811
2,796
2,788
15
23
- of which Pandora operated
2
2,213
2,178
2,173
35
40
- of which franchise operated
239
259
281
-20
-42
- of which third-party distribution
359
359
334
0
25
Other points of sale
4,231
4,116
4,103
115
128
- of which Pandora operated
2
675
677
692
-2
-17
- of which franchise operated
3,296
3,182
3,162
114
134
- of which third-party distribution
260
257
249
3
11
Total points of sale
7,042
6,912
6,891
130
151
1
Please refer to note 10 Store network, concept store development in the accounting notes section for more details.
2
Pandora does not own any of the premises (land and buildings) where stores are operated. Pandora exclusively operates stores from leased premises.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • PROFITABILITY
PAGE 15 OF 43
PROFITABILITY
SOLID EBIT MARGIN
In Q2 2026, the reported EBIT margin increased 210bp Y/Y to 20.3% (Q2 2025: 18.2%). The increase was
driven by a one-off gain of 250bp from the partial refund of Pandora’s claim on US IEEPA tariffs previously
paid and around 200bp of cost phasing across the OPEX lines. Combined, these more than offset the
external headwinds of 300bp coming from commodities, foreign exchange and the tariffs which remain in
place. Specifically, commodities were a headwind of 170bp and US import tariffs a further 150bp, partially
offset by a 20bp foreign exchange tailwind, as a weaker USD flowed through production costs.
Excluding the one-off gain related to the claim on US IEEPA tariffs, the EBIT margin would have been
roughly in line with last year, despite the 300bp of external headwinds and with continued support from
the margin-accretive network expansion.
The temporary impact from forward integration contributed an 80bp tailwind in the quarter (included in
“Net operating leverage & other” in the bridge below). This represents a reversal of last year’s drag, and is
in line with the guidance of a slight tailwind for the full year.
Q2 2026 EBIT MARGIN VS. Q2 2025
Margin impact in pp (approximation)
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • PROFITABILITY
PAGE 16 OF 43
GROSS MARGIN
The gross margin in Q2 2026 was 80.5%, 120bp above last year. The increase was driven by a one-off gain
of 230bp relating to a partial refund of IEEPA tariffs previously paid. Excluding this one-off gain, the gross
margin would have been 78.2%, 110bp below last year reflecting external headwinds of 270bp from
commodities, foreign exchange and continuing tariffs. These were partly offset by lower promotional
activity, operational efficiencies and favourable channel mix. The lower promotional activity reflects partly
timing and partly a deliberate decision to reduce the promotional level, while efficiencies were driven by
improvements at our crafting facilities in Thailand and channel mix by the continued expansion of the
Pandora-operated network.
Foreign exchange turned into a tailwind of 50bp in the quarter, driven by the US dollar. This was more than
offset by commodities, which added 170bp of pressure. Tariffs weighed a further 150bp on margins,
reflecting a full quarter of impact versus only partial impact in Q2 2025.
In Q2 2026, Fuel with more delivered a gross margin of 84.0% (Q2 2025 82.2%) and 79.2% (Q2 2025 78.3%)
for the Core.
GROSS MARGIN AND GROSS PROFIT
DKK million
Q2 2026
Q2 2025
Growth in
constant FX
H1 2026
H1 2025
Growth in
constant FX
Revenue
7,219
7,075
3%
14,328
14,421
3%
Cost of sales
-1,411
-1,468
-1%
-2,869
-2,904
3%
Gross profit
5,808
5,607
4%
11,459
11,517
3%
Gross margin %
80.5%
79.3%
0.7%
80.0%
79.9%
0.0%
OPERATING EXPENSES
In Q2 2026, total operating expenses increased by 1% in constant exchange rates compared to Q2 2025,
corresponding to 60.2% of revenue (Q2 2025: 61.1%). The Y/Y cost phasing, which has favourably impacted
Q1 and Q2 2026, is expected to reverse in H2 2026 and be neutral for the full year 2026.
Sales and distribution expenses increased by 4%, reflecting the continued expansion of the owned store
network. Compared to Q2 2025, Pandora added net 23 stores to its own network, which alone added
around DKK 100 million to sales and distribution expenses. The net impact from network expansion is
skewed by a high number of closures, mainly in China and Brazil in the past 12 months, which generated
materially lower revenue and were EBIT-dilutive. The expansion remains EBIT margin accretive as the
higher gross margin and leverage on other OPEX lines offset the increase in sales and distribution expenses.
Marketing expenses decreased by 5% in constant exchange rates, ending at 14.1% as a share of revenue (Q2
2025: 15.2%), mainly reflecting a different phasing this year. For the full year, the share of revenue is
expected to be broadly in line with 2025.
Administrative expenses decreased by 1% Y/Y, ending at 8.7% as a share of revenue (Q2 2025: 9.0%),
reflecting cost control and phasing.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • PROFITABILITY
PAGE 17 OF 43
QUARTERLY OPERATING EXPENSES
DKK million
Q2 2026
Q2 2025
Growth in
constant FX
Share of
revenue
Q2 2026
Share of
revenue
Q2 2025
Sales and distribution expenses
-2,697
-2,601
4%
37.4%
36.8%
Marketing expenses
-1,019
-1,078
-5%
14.1%
15.2%
Administrative expenses
-630
-640
-1%
8.7%
9.0%
Total operating expenses
-4,345
-4,320
1%
60.2%
61.1%
YEAR-TO-DATE OPERATING EXPENSES
DKK million
H1 2026
H1 2025
Growth in
constant FX
Share of
revenue
H1 2026
Share of
revenue
H1 2025
Sales and distribution expenses
-5,430
-5,242
6%
37.9%
36.3%
Marketing expenses
-1,906
-2,095
-7%
13.3%
14.5%
Administrative expenses
-1,172
-1,253
-5%
8.2%
8.7%
Total operating expenses
-8,508
-8,589
2%
59.4%
59.6%
FINANCIAL EXPENSES AND TAX
Net financials amounted to a cost of DKK 291 million in Q2 2026, compared to DKK 224 million last year.
The increase was mainly driven by a DKK 42 million financial expense related to the sale of the tariff claim
(please refer to the “Other events” section), as well as a loss on foreign exchange hedging contracts in the
quarter compared to a gain last year.
The effective tax rate in Q2 2026 came in at 25.4%, up 90bp compared to last year. This year, we are
expecting the full-year tax rate to be around 25% (unchanged).
EPS ended at DKK 11.7 in Q2 2026, a 14% increase from DKK 10.3 in Q2 2025. Excluding the one-off gain
related to the partial IEEPA tariff refund, and the associated financial expense and tax, EPS would be DKK
10.3, in line with last year. Adjusting for foreign exchange effects, EPS was DKK 12.0.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • CASH FLOW AND BALANCE SHEET
PAGE 18 OF 43
CASH FLOW & BALANCE SHEET
CONTINUED CAPITAL DISCIPLINE
Net working capital was 2.2% of revenue in Q2 2026, compared with 4.7% in Q2 2025. The Y/Y reduction
was driven by a reduction in unrealised gains on commodity hedging derivatives. Excluding derivative
effects in both periods, net working capital was broadly unchanged at 3.1%, against 3.4% last year.
Inventories ended at 17.8% of revenue, up from 14.6% last year, mainly reflecting higher commodity prices
and tariffs, together with a deliberate build to support product availability and the shift to platinum-plated.
For FY 2026, Pandora expects inventory levels to be notably higher Y/Y in absolute terms, driven mainly
by higher commodity prices but also the transition to platinum-plated where Pandora will temporarily need
to hold more inventory. Over time, and as the transition to platinum-plated is completed, inventories will
decline again, almost towards historical levels.
Trade receivables remained at a healthy level at 2.2% of revenue, broadly in line with 2.0% last year. Trade
payables increased to 14.0% of revenue from 10.1% last year, mainly reflecting the higher commodity prices
as well as continued optimisation of supplier terms.
Cash conversion was 101%, up from 74% in Q2 2025. The improvement was primarily driven by the collection
of derivative receivables, partly offset by a higher level of inventory.
CAPEX amounted to DKK 0.6 billion in Q2, representing 8% of revenue. The investments primarily reflect
store expansion and refurbishment as well as digital initiatives, including the ERP rollout.
ROIC was 39%, compared to 44% last year, mainly reflecting the significant commodity and tariff-related
headwinds on EBIT. ROIC continues to be supported by our investments in expanding the store network,
as new stores are ROIC accretive on a run-rate basis.
NET WORKING CAPITAL
Share of preceding 12 months’ revenue
Q2 2026
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Inventories
17.8%
16.4%
15.0%
16.4%
14.6%
Trade receivables
2.2%
2.5%
3.6%
2.1%
2.0%
Trade payables
-14.0%
-13.2%
-14.2%
-10.9%
-10.1%
Other net working capital elements
-3.8%
0.8%
-0.3%
-0.3%
-1.9%
Total
2.2%
6.5%
4.1%
7.3%
4.7%
Total, excluding derivatives
1
3.1%
3.5%
-1.1%
4.9%
3.4%
1
Derivative financial instruments are measured at fair value. See note 11 - Commodity hedging and derivatives.
BALANCE SHEET
Non-current assets increased by DKK 1.7 billion Y/Y to DKK 20.6 billion at the end of Q2 2026, mainly driven
by network expansion increasing right-of-use assets and CAPEX related to the store network and digital
initiatives. Current assets were DKK 8.6 billion, up DKK 0.5 billion compared with last year. The increase
mainly reflects higher inventory of DKK 1.0 billion on the back of higher commodity prices, partly offset by
a decline in derivatives following a decrease in the market value of hedging contracts related to silver and
gold of DKK 0.5 billion.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • CASH FLOW AND BALANCE SHEET
PAGE 19 OF 43
At the end of Q2 2026, net interest-bearing debt amounted to DKK 15.6 billion, compared with DKK 15.3
billion in Q2 2025, with leverage at 1.5x. As previously communicated, leverage is expected to remain above
2025 levels during the year.
Equity amounted to DKK 4.3 billion at the end of Q2 2026, up DKK 0.8 billion from DKK 3.6 billion last year,
mainly reflecting retained earnings as no share buybacks were carried out in H1 2026.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • FINANCIAL GUIDANCE
PAGE 20 OF 43
FINANCIAL GUIDANCE
ORGANIC GROWTH AND EBIT MARGIN GUIDANCE UPGRADED
Pandora now expects organic revenue growth of 0-3% in 2026 (previously -1% to 2%) and an EBIT margin
in the 22-23% range (previously 21-22%). In a macroeconomic environment that remains unsupportive of
growth, Pandora is continuing the step‑change in execution initiated earlier this year. Execution is
progressing with more decisive actions, including a renewed direction in design, marketing and market-
specific strategies, with the first initiatives now in the market. This reset, underpinned by clearer strategic
priorities, is intended to support stronger like‑for‑like performance over time.
The macroeconomic outlook for 2026 and the broader consumer environment nonetheless remain highly
uncertain, and recent geopolitical events elevate this uncertainty further.
REVENUE GUIDANCE
The organic growth guidance can be illustrated as follows:
FY 2026 GROWTH COMPOSITION VS. FY 2025
Growth in pp (approximation), revenue in DKK billion
Pandora expects organic growth of between 0% and 3%. This reflects LFL growth of ‑2% to 1% (previously
-3% to 0%), around 3% contribution from network expansion (previously around 2%), partially offset by a
drag of around 1% from sell-in and other. In total, revenue growth in local currency, including forward
integration, is expected to be in the 0% to 3% range. Foreign exchange is now expected to represent a
headwind of around 0.6% (previously a headwind of 1.2%).
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PAGE 21 OF 43
PROFITABILITY GUIDANCE
The EBIT margin guidance can be illustrated as follows:
FY 2026 EBIT MARGIN VS. FY 2025
Growth in pp (approximation)
Pandora now expects an EBIT margin of 22-23% in 2026 (previously 21-22%). The upgrade primarily reflects
the one-off gain from the refund of IEEPA tariffs previously paid, which is expected to contribute 100bp to
the EBIT margin in 2026.
The guidance continues to reflect a year of significant external headwinds and continued investment behind
strategic priorities. The EBIT margin decline vs. 2025 is driven by external headwinds of 190bp (previously
200-250bp). Excluding these headwinds and the one-off gain, the margin would have been roughly flat.
As Pandora continues the expansion of its profitable store network, a 50bp (previously 30bp) positive
impact on the EBIT margin is expected in 2026, reflecting the increased contribution from network
expansion to organic growth of 3% (previously 2%). In addition, we expect a positive net 30bp (unchanged)
contribution in 2026, from a lower temporary drag related to forward‑integration activities, as forward
integration will be limited in 2026. This is partially offset by a 40bp drag from sell-in and other, reflecting
the expected 1% drag on organic growth.
Net operating leverage & other is expected to be around flat (unchanged). In 2026, Pandora will continue
to invest behind the strategy to re-accelerate growth. Annual salary increases and cost inflation remain a
headwind to the margin, offset by ongoing efficiencies, including the positive impact from the Silverstone
cost programme, as well as selective pricing.
The transition to platinum-plated jewellery is progressing, and 50-100bp (unchanged) of one-off transition
costs are expected to occur in 2026.
The one-off gain related to the refund of US IEEPA tariffs previously paid is expected to contribute around
100bp to the EBIT margin in 2026, of which DKK 180 million was recognised in Q2 2026 and the remainder
is expected in H2 2026. The associated finance cost is reflected in the guidance for net financial expenses.
For further information, see “Other events”.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • FINANCIAL GUIDANCE
PAGE 22 OF 43
External headwinds amount to 190bp (previously 200-250bp), driven by a combination of higher
commodity prices (primarily silver) and the continuation of US import tariffs. These headwinds were
anticipated and are being actively managed through hedging, selective pricing, but most importantly
product innovation and the planned material transition.
In 2026, Pandora’s P&L is now fully (previously 95-100%) hedged on silver at a price of around USD 32/oz,
resulting in a Y/Y headwind from silver and gold of 150bp (previously 150-200bp). Foreign exchange
represents a 60bp (previously 50bp) tailwind to the margin, reflecting more favourable USD rates flowing
through production costs.
The additional tariffs currently imposed on goods imported to the US are expected to represent a 100bp
(unchanged) impact on the EBIT margin. In line with the announcement from the US Administration in July,
the guidance now assumes a tariff rate of 12.5% on imports from Thailand going forward (previously
assumed to return to 19%). The financial impact in 2026 is limited as the majority of goods to be sold in
2026 have already been imported, meaning that the lower tariff rates largely affect 2027 onwards.
Following favourable cost phasing in Q1 and Q2 2026 compared to last year, the guided decline in the EBIT
margin for the full year of 2026 is now expected to be visible in both Q3 (on an underlying basis, adjusting
for the potential further one-off income from a refund of IEEPA tariffs previously paid) as well as Q4.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • FINANCIAL GUIDANCE
PAGE 23 OF 43
2026 GUIDANCE – OTHER PARAMETERS
Pandora expects to open 50–75 concept stores net, including around 25 net store closures in China. In
addition, Pandora expects to close net 25–50 Pandora‑operated shop‑in‑shops, due to around net 50
closures in Brazil and China.
CAPEX is expected to end at around 7% of revenue. Digital initiatives and the store network remain the
primary drivers of CAPEX. Pandora continues to invest in the store network, including new openings, refits
and new window frameworks. Pandora will also continue investment into its production facilities, including
capabilities to support the expansion of its multi-material offering which will drive around DKK 400 million
in CAPEX in 2026.
The effective tax rate is expected to be around 25% in 2026. The increase compared to 24.2% in 2025
reflects the expiry of certain tax incentives in Thailand and the absence of the one‑off benefit from the
retroactive bilateral Advance Pricing Agreement between the Danish and Australian tax authorities signed
in 2025.
Pandora expects net financial expenses in 2026 to be DKK 1,100-1,150 million (previously DKK 1,000-1,050
million) with the increase entirely driven by the sale of the US IEEPA tariff claim. The guidance consists of
around DKK 950 million interest on debt, IFRS 16-related interest and fees, around DKK 110 million of finance
costs related to the sale of the US IEEPA tariff refund claims, and a net DKK 50-100 million loss on non-
cash foreign exchange adjustments on intercompany balances and foreign exchange hedging contracts.
The latter depends entirely on the development in foreign exchange rates through the year and will be
updated on a regular basis.
The guidance contains forward-looking statements, which include estimates of financial performance and
targets. These statements are not guarantees of future performance and involve certain risks and
uncertainties. Therefore, actual future results and trends may differ materially from what is forecasted in
this report due to a variety of factors, refer to the disclaimer on page 43.
FOREIGN EXCHANGE AND COMMODITY ASSUMPTIONS
AND IMPLICATIONS – AS OF 7 AUGUST 2026
Average 2025
Average 2026
2026 Y/Y Financial
Impact
USD/DKK
6.62
6.44
THB/DKK
0.20
0.20
GBP/DKK
8.71
8.66
AUD/DKK
4.26
4.53
MXN/DKK
0.34
0.37
CAD/DKK
4.73
4.64
TRY/DKK
0.17
0.14
CNY/DKK
0.95
0.93
Silver/USD (per ounce)
27.7
32.4
Gold/USD (per ounce)
2,375
3,290
Revenue (DKK million)
Approx. -200
EBIT (DKK million)
Approx. -350
EBIT margin (foreign exchange)
Approx. 0.6%
EBIT margin (commodities)
Approx. -1.5%
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • CA PITAL STRUCTURE POLICY AND CASH DISTRIBUTION
PAGE 24 OF 43
CAPITAL STRUCTURE POLICY AND CASH DISTRIBUTION
Pandora aims for a leverage ratio of approximately 1.5x NIBD to EBITDA by the end of 2026. Compared
with the end of 2025, the slight increase in leverage is primarily driven by higher net debt, while EBITDA is
expected to remain broadly stable. In line with the usual seasonality of the business, leverage will increase
through the year, peaking in Q3, and then fall back by year-end.
Pandora paid an ordinary dividend of DKK 22 per share in 2026, corresponding to DKK 1.6 billion. Given the
surging silver prices and the temporary impact on earnings, Pandora will resume its historical, significant
share buyback programmes once the plans to transition to platinum-plated jewellery is further progressed.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • SUSTAINABILITY
PAGE 25 OF 43
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • OTHER EVENTS
PAGE 26 OF 43
OTHER EVENTS
US IEEPA tariff refund claim
In May 2026, Pandora entered into a financing arrangement with a third party under which the economic
interest and risk exposure related to the US IEEPA tariff refund claims were transferred in exchange for a
total consideration of USD 55 million (DKK 351 million), representing 77% of the nominal claim value of USD
72 million.
Accordingly, a financial liability was recognised corresponding to the consideration received. The liability
will be settled as refunds are received from the US Customs and Boarder Protection (CBP) and transferred
to the third party.
In accordance with IFRS, the difference between the consideration received and the nominal claim value is
recognised as a finance cost over the period in which the related refunds are recognised.
As set out in the business update, above resulted in an initial one-off income related to IEEPA tariffs
recognized during Q2 2026 amounting to USD 28 million (DKK 180 million).
Pandora appoints André Branch as President of the North America cluster
André Branch brings more than 25 years of experience across global consumer, beauty and lifestyle brands.
He joins Pandora from the position of CEO at R.E.M. Beauty. Earlier in his career, he held multiple senior
leadership roles in the North America region and Europe at companies such as Estée Lauder, L’Oréal,
Diageo and Kraft Heinz.
As President of North America, André Branch will lead Pandora’s next phase of growth across the region.
He will focus on deepening customer relevance, broadening the brand’s appeal and capturing the
significant growth opportunities ahead, reinforcing North America as a key strategic growth engine for the
company.
His appointment reflects Pandora’s ambition to accelerate growth, elevate execution and reinforce North
America as a key growth engine for the company.
André Branch will assume the role of President of North America on 15 August, succeeding Luciano
Rodembusch, who departed Pandora in February 2026.
FINANCIAL CALENDAR 2026
The expected dates for upcoming 2026 financial announcements for Pandora A/S are as follows:
4 November 2026 Interim Report Q3 2026 including strategic update
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • OTHER EVENTS
PAGE 27 OF 43
2026 YTD DEVELOPMENT
REVENUE
Total revenue increased by 3% in local currency to DKK 14,328 million in the first half of 2026 compared to
2025. Organic growth was 2%.
Revenue from Pandora’s Core segment grew by 2% in local currency to DKK 10,473 million in the first half
of 2026 from DKK 10,612 million in 2025. The segment “Fuel with more” saw revenue growth of 4% in local
currency, driven by strong performance across most collections.
GROSS PROFIT AND COSTS
Gross profit was DKK 11,459 million in the first half of 2026 (DKK 10,517 million in 2025), resulting in a gross
margin of 80.0% in 2026 vs. 79.9% in 2025. The Core segment generated a gross margin of 78.5% (2025:
78.7%), while Fuel with more generated a gross margin of 83.9% (2025: 83.1%). The gross margin is
supported by favourable channel mix and operational efficiencies, which is being offset by the increase in
commodity prices.
Sales and distribution expenses increased to DKK 5,430 million in the first half of 2026 (DKK 5,242 million
in 2025), corresponding to 37.9% of revenue in 2026 (36.3% in 2025). The increase is mainly the result of
the profitable expansion of the Pandora owned physical store network.
Marketing expenses were DKK 1,906 million in the first half of 2026 (DKK 2,095 million in 2025), resulting
in a share of revenue of 13.3% in 2026, below the 14.5% last year due to a different phasing this year.
Administrative expenses ended at DKK 1,172 million in the first half of 2026 compared with DKK 1,253 million
in 2025, corresponding to 8.2% of revenue in 2026, a touch lower than the 8.7% last year.
EBIT
EBIT for the first half of 2026 was DKK 2,951 million, resulting in an EBIT margin of 20.6% vs. 20.3% in 2025.
The increase is driven by gains from one-offs and phasing of costs.
NET FINANCIALS
Net financials amounted to a cost of DKK 515 million in the first half of 2026 vs. a cost of DKK 461 million in
2025. The increase reflects the financing arrangement entered into in relation to Pandora’s US IEEPA tariff
refund claims.
INCOME TAX EXPENSES
Income tax expenses were DKK 619 million in the first half of 2026 compared with DKK 562 million in 2025,
implying an effective tax rate for the Group of 25.4% in 2026, up from 22.8% in 2025, driven by a one-off
benefit in the first half of 2025 due to the retroactive effect for 2022-2024 of a bilateral advance pricing
arrangement signed by the Danish Tax Authorities and the Australian taxation office.
NET PROFIT
Net profit in the first half of 2026 was DKK 1,817 million vs. DKK 1,904 million in 2025.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • CONTACT
PAGE 28 OF 43
CONTACT
CONFERENCE CALL
A conference call for investors and financial analysts will be held today at 11.00 CET and can be joined
online at www.pandoragroup.com. The presentation for the call will be available on the website before
the call.
The following numbers can be used by investors and analysts:
DK: +45 78 76 84 90
SE: +46 406 820 620
UK: +44 203 769 6819
US: +1 646 787 0157
PIN: 837462
To ask a question, press 5*
Link to webcast: https://pandora.nexahub.io/events/second-quarter-results-2026
ABOUT PANDORA
accessible luxury jewellery made from high-quality materials. Each piece is created to inspire self-
expression, allowing people to share their stories and passions through meaningful jewellery. Pandora
jewellery is sold in more than 100 countries through 7,000 points of sale, including more than 2,800
concept stores.
Headquartered in Copenhagen , Denmark
its jewellery with 100% recycled silver and gold. Pandora is committed to leadership in sustainability and
has set out to halve greenhouse gas emissions across its value chain by 2030. Pandora is listed on the
Nasdaq Copenhagen stock exchange and generated revenue of DKK 32.5 billion (EUR 4.4 billion) in 2025.
CONTACT
For more information, please contact:
Investor Relations
BILAL AZIZ
SVP, Investor Relations & Treasury
+45 3137 9486
biazi@pandora.net
Corporate Communications
MADS TWOMEY-MADSEN
SVP, Corporate Communications & Sustainability
+45 2510 0403
madt@pandora.net
ADAM FUGLSANG
Director, Investor Relations
+45 6167 7425
adfug@pandora.net
JOHAN MELCHIOR
VP, Media Relations & Public Affairs
+45 4060 1415
jome@pandora.net
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • FINANCIAL STATEMENTS
PAGE 29 OF 43
FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
DKK million
Notes
Q2 2026
Q2 2025
H1 2026
H1 2025
FY 2025
Revenue
Cost of sales
-1,411
-1,468
-2,869
-2,904
-6,802
Gross profit
Sales, distribution and marketing
expenses
-3,715
-3,680
-7,336
-7,337
-15,469
Administrative expenses
-630
-640
-1,172
-1,253
-2,495
Operating profit
Finance income
Finance costs
-325
-301
-604
-577
-1,149
Profit before tax
Income tax expense
-297
-261
-619
-562
-1,671
Net profit for the period
Earnings per share, basic, DKK
Earnings per share, diluted, DKK
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
DKK million
Q2 2026
Q2 2025
H1 2026
H1 2025
FY 2025
Net profit for the period
Other comprehensive income:
Items that may be reclassified to
profit/loss for the period
Exchange rate adjustments of
investments in subsidiaries
-416
-732
-710
Fair value adjustment of hedging
instruments
-929
-1,798
Tax on other comprehensive income,
hedging instruments, income/expense
-54
-97
-308
Items that may be reclassified to
profit/loss for the period, net of tax
-641
-211
-1,172
-367
Items not to be reclassified to
profit/loss for the period
Actuarial gain/loss on defined benefit
plans, net of tax
-21
-21
-23
Items not to be reclassified to
profit/loss for the period, net of tax
-21
-21
-23
Other comprehensive income, net of
tax
-610
-233
-1,140
-388
Total comprehensive income for the
period
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • FINANCIAL STATEMENTS
PAGE 30 OF 43
CONSOLIDATED BALANCE SHEET
DKK million
Notes
2026
30 June
2025
30 June
2025
31 December
ASSETS
Goodwill
6
Brand
Distribution
Other intangible assets
Total intangible assets
Property, plant and equipment
Right-of-use assets
7
Deferred tax assets
Other financial assets
Total non-current assets
Inventories
Trade receivables
5
Contract assets
Derivative financial instruments
4,11
Income tax receivable
Other receivables
Cash
Total current assets
Total assets
EQUITY AND LIABILITIES
Share capital
Treasury shares
-193
-1,868
-4,236
Reserves
Proposed dividend
Retained earnings
Total equity
Provisions
Loans and borrowings
4,7
Deferred tax liabilities
Other payables
Total non-current liabilities
Provisions
Refund liabilities
Contract liabilities
Loans and borrowings
4,7
Derivative financial instruments
4,11
Trade payables
8
Income tax payable
Other payables
Total current liabilities
Total liabilities
Total equity and liabilities
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • FINANCIAL STATEMENTS
PAGE 31 OF 43
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
DKK million
Share
capital
Treasury
shares
Translation
reserve
Hedging
reserve
Dividend
proposed
Retained
earnings
Total
equity
2026
Equity at 1 January
-4,236
Net profit for the period
Other comprehensive income, net of tax
-1,402
-1,140
Total comprehensive income for the period
-1,402
Share-based payments
-218
Purchase of treasury shares
-11
-11
Cancellation of treasury shares
-4
-3,828
Dividend paid
-1,646
-1,646
Dividend proposed
-5
Equity at 30 June
-193
-284
2025
Equity at 1 January
-3,228
Net profit for the period
Other comprehensive income, net of tax
-728
-21
-388
Total comprehensive income for the period
-728
Share-based payments
-100
Purchase of treasury shares
-1,988
-1,988
Cancellation of treasury shares
-3
-3,165
Dividend paid
-1,567
-1,567
Dividend proposed
-10
Equity at 30 June
-1,868
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • FINANCIAL STATEMENTS
PAGE 32 OF 43
CONSOLIDATED STATEMENT OF CASH FLOWS
The above cannot be derived directly from the income statement and the balance sheet.
DKK million
Notes
Q2 2026
Q2 2025
H1 2026
H1 2025
FY 2025
Operating profit
Depreciation and amortisation, etc.
Share-based payments
Change in inventories
-441
-199
-793
-448
-565
Change in receivables
-424
Change in payables and other liabilities
8
-996
-1,699
Other non-cash adjustments
-26
-29
Finance income received
Finance costs paid
-473
-425
-640
-621
-1,009
Income taxes paid
-210
-157
-711
-808
-1,881
Cash flows from operating activities, net
Acquisitions of subsidiaries and activities,
net of cash acquired
-182
-6
-362
-373
Purchase of intangible assets
-130
-117
-251
-247
-462
Purchase of property, plant and equipment
-324
-398
-629
-639
-1,449
Change in other assets
-15
-6
-17
-2
-10
Proceeds from sale of property, plant and equipment
Cash flows from investing activities, net
-466
-699
-899
-1,244
-2,286
Dividend paid
-1,646
-1,567
-1,567
Dividend paid - withholding tax
-395
-383
Purchase of treasury shares
-887
-34
-1,898
-4,384
Proceeds from loans and borrowings
-388
Repayment of loans and borrowings
-56
-59
-1,056
-59
-108
Repayment of lease commitments
-345
-322
-709
-636
-1,260
Cash flows from financing activities, net
-1,184
-455
-1,590
-1,469
-6,119
Net increase/decrease in cash
-616
-1,615
-1,044
Cash and cash equivalents, beginning of period
Exchange gains/losses on cash and cash equivalents
-37
-53
-65
Net increase/decrease in cash
-616
-1,615
-1,044
Cash and cash equivalents, end of period
Cash balances
Overdrafts
-314
-181
-314
-181
-111
Cash and cash equivalents, end of period
Cash flows from operating activities, net
- Finance income received
-13
-19
-21
-28
-174
- Finance costs paid
Cash flows from investing activities, net
-466
-699
-899
-1,244
-2,286
- Acquisition of subsidiaries and activities, net of cash
acquired
Repayment of lease commitments
-345
-322
-709
-636
-1,260
Free cash flows incl. lease payments
Unutilised committed credit facilities
4
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • ACCOUNTING NOTES
PAGE 33 OF 43
ACCOUNTING NOTES
NOTE 1 – ACCOUNTING POLICIES
The unaudited condensed consolidated interim financial statements have been prepared in accordance
with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB)
and adopted by the EU and additional Danish disclosure requirements for interim financial reporting of
listed companies.
The accounting policies applied are consistent with the accounting policies set out in the Annual Report
2025.
Due to rounding, numbers presented throughout this report may not add up precisely to the totals, and
percentages may not precisely reflect the absolute figures. The interim financial report is presented in
Danish kroner (DKK), and all amounts are in millions unless otherwise stated.
Pandora presents financial measures in the interim financial report that are not defined according to IFRS
Accounting Standards. Pandora believes these non-GAAP measures provide valuable information to
investors and Pandora’s management when evaluating performance. Since other companies may calculate
these differently from Pandora, they may not be comparable to the measures used by other companies.
These financial measures should therefore not be considered to be a replacement for measures defined
under IFRS Accounting Standards. For definitions of the performance measures used by Pandora, see note
5.6 Financial definitions to the consolidated financial statements in the Annual Report 2025.
New standards, interpretations and amendments adopted by Pandora
Pandora has adopted all new or amended IFRS Accounting Standards and interpretations (IFRS IC) as
adopted by the EU and which are effective for the financial year beginning on 1 January 2026. The
implementation of these new or amended standards and interpretations have no material impact on the
consolidated financial statements for the year.
The new standards that are not yet effective are not expected to have any material impact on Pandora,
except for IFRS 18 Presentation and Disclosure in Financial Statements, which was issued in April 2024 and
will be effective from 2027. IFRS 18 is expected to impact the presentation and disclosure of the financial
statements, but not recognition or measurement. Refer to note 1.2 New accounting policies and disclosures
in the Annual Report 2025.
NOTE 2 – MANAGEMENT JUDGEMENTS AND ESTIMATES UNDER IFRS ACCOUNTING STANDARDS
In preparing the condensed consolidated interim financial statements, management makes various
judgements, accounting estimates and assumptions that form the basis of the presentation, recognition
and measurement of Pandora’s assets and liabilities.
Ongoing geopolitical developments continue to contribute to global economic uncertainty, which may
affect market conditions and cost levels. Management continues to monitor the situation closely.
Pandora has evaluated the value of its non-current assets. Based on current market information and
forecasts, no indicators of impairment were identified, and the most recent impairment test conducted in
2025 is still considered to include sufficient headroom. Given the uncertain macroeconomic environment,
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • ACCOUNTING NOTES
PAGE 34 OF 43
Pandora will continue assessing the value of the assets. Pandora has also considered the recoverability of
accounts receivable and the inventory value and has not identified any impairment write down.
For information on liquidity risk please refer to note 4.4 Financial risks in the 2025 Annual Report.
NOTE 3 – SEGMENT AND REVENUE INFORMATION
Pandora’s activities are segmented into two reportable segments, each responsible for the end-to-end
performance of collections. One includes our Core collections, while the other, Fuel with more, covers
newer collections and innovations.
Core includes the charms and charm carriers which focus on collectability. Fuel with more includes the
Modern Classics (Pandora Timeless, Pandora Signature and PANDORA ESSENCE) and Pandora Lab-Grown
Diamonds and targets both existing and new customers who may have a different aesthetic preference
than the Core jewellery design.
The two operating segments include all channels relating to the distribution and sale of Pandora products.
Executive Management monitors the profitability of the operating segments separately for the purpose of
making decisions about resource allocation and performance management. Segment results are measured
at gross profit as presented in the table below.
Non-unit-driven revenue, comprising other services such as engraving and franchise fees, is allocated
proportionately to the different revenue categories.
SEGMENT INFORMATION
DKK million
Core
Fuel with
more
Group
Q2 2026
Revenue
5,362
1,857
7,219
Cost of sales
-1,113
-297
-1,411
Gross profit
4,249
1,559
5,808
Gross margin, %
79.2%
84.0%
80.5%
Operating expenses
-4,345
Consolidated operating profit (EBIT)
1,463
Profit margin (EBIT margin), %
20.3%
Q2 2025
Revenue
5,314
1,761
7,075
Cost of sales
-1,154
-314
-1,468
Gross profit
4,160
1,447
5,607
Gross margin, %
78.3%
82.2%
79.3%
Operating expenses
-4,320
Consolidated operating profit (EBIT)
1,287
Profit margin (EBIT margin), %
18.2%
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • ACCOUNTING NOTES
PAGE 35 OF 43
DKK million
Core
Fuel with
more
Group
H1 2026
Revenue
10,473
3,855
14,328
Cost of sales
-2,249
-620
-2,869
Gross profit
8,224
3,235
11,459
Gross margin, %
78.5%
83.9%
80.0%
Operating expenses
-8,508
Consolidated operating profit (EBIT)
2,951
Profit margin (EBIT margin), %
20.6%
H1 2025
Revenue
10,612
3,810
14,421
Cost of sales
-2,260
-644
-2,904
Gross profit
8,351
3,166
11,517
Gross margin, %
78.7%
83.1%
79.9%
Operating expenses
.
-8,589
Consolidated operating profit (EBIT)
2,928
Profit margin (EBIT margin), %
20.3%
REVENUE BY COLLECTIONS
DKK million
Q2 2026
Q2 2025
Like-
for-like
Local currency
growth
Share of
Revenue
Core
5,362
5,314
-1%
2%
74%
- Moments
4,418
4,413
-2%
1%
61%
- Collabs
671
643
4%
5%
9%
- ME
273
258
7%
6%
4%
Fuel with more
1,857
1,761
6%
6%
26%
- Timeless
1,480
1,299
13%
15%
20%
- Signature
93
147
-39%
-37%
1%
- PANDORA ESSENCE
212
230
2%
-7%
3%
- Pandora Lab-Grown Diamonds
71
85
-20%
-14%
1%
Total revenue
7,219
7,075
1%
3%
100%
Goods transferred at a point in time
7,209
7,064
Services transferred over time
10
11
Total revenue
7,219
7,075
REVENUE BY COLLECTIONS
DKK million
H1 2026
H1 2025
Like-
for-like
Local currency
growth
Share of
Revenue
Core
10,473
10,612
-1%
2%
73%
- Moments
8,546
8,789
-3%
0%
60%
- Collabs
1,365
1,315
6%
7%
10%
- ME
562
508
11%
14%
4%
Fuel with more
3,855
3,810
3%
4%
27%
- Timeless
3,137
2,935
9%
11%
22%
- Signature
198
319
-38%
-37%
1%
- PANDORA ESSENCE
374
381
10%
0%
3%
- Pandora Lab-Grown Diamonds
146
175
-18%
-12%
1%
Total revenue
14,328
14,421
0%
3%
100%
Goods transferred at a point in time
14,308
14,399
Services transferred over time
20
23
Total revenue
14,328
14,421
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • ACCOUNTING NOTES
PAGE 36 OF 43
REVENUE DEVELOPMENT BY REGION
DKK million
Q2 2026
Q2 2025
Like-
for-like
Local
currency
growth
EMEA
1
3,388
3,441
-2%
-1%
North America
2,697
2,673
-1%
3%
Latin America
513
405
18%
21%
Asia-Pacific
621
556
10%
10%
Total revenue
7,219
7,075
1%
3%
1
Europe, Middle East & Africa.
DKK million
H1 2026
H1 2025
Like-
for-like
Local
currency
growth
EMEA
1
6,953
7,085
-2%
0%
North America
5,124
5,344
-1%
2%
Latin America
1,021
868
12%
17%
Asia-Pacific
1,229
1,123
11%
11%
Total revenue
14,328
14,421
0%
3%
1
Europe, Middle East & Africa.
REVENUE DEVELOPMENT BY CHANNEL
DKK million
Q2 2026
Q2 2025
Organic
growth
Share of
Revenue
Pandora operated
1
retail
6,294
6,047
5%
87%
- of which concept stores
4,370
4,213
4%
61%
- of which online stores
1,372
1,379
0%
19%
- of which other points of sale
552
455
23%
8%
Wholesale
735
851
-11%
10%
- of which concept stores
171
255
-24%
2%
- of which other points of sale
564
596
-5%
8%
Third-party distribution
191
177
5%
3%
Total revenue
7,219
7,075
3%
100%
DKK million
H1 2026
H1 2025
Organic
growth
Share of
Revenue
Pandora operated
1
retail
12,441
12,223
4%
87%
- of which concept stores
8,464
8,253
4%
59%
- of which online stores
2,905
3,038
-1%
20%
- of which other points of sale
1,071
932
19%
7%
Wholesale
1,505
1,840
-10%
11%
- of which concept stores
373
620
-21%
3%
- of which other points of sale
1,132
1,220
-5%
8%
Third-party distribution
382
359
6%
3%
Total revenue
14,328
14,421
2%
100%
1
Pandora does not own any of the premises (land and buildings) where stores are operated. Pandora exclusively operates stores from
leased premises.
The use of sales channels for the distribution of Pandora jewellery depends on the underlying market
maturity and varies within markets but is consistent when viewed between segments.
Due to the seasonal nature of the jewellery business, higher revenue and profits are historically realised in
the fourth quarter.
NOTE 4 – FINANCIAL RISKS
Pandora’s overall risk exposure and financial risks, including risks related to commodity prices, foreign
currency, credit, liquidity and interest rates, are described in the disclosures in note 4.4 Financial risks to
the consolidated financial statements in the Annual Report 2025.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • ACCOUNTING NOTES
PAGE 37 OF 43
Net interest-bearing debt (NIBD), incl. capitalised leases, amounted to DKK 15.6 billion at the end of Q2
2026 (Q4 2025: DKK 13.7 billion) corresponding to a financial leverage of 1.5x (Q4 2025: 1.3x).
Liquidity risk
Pandora maintains an adequate level of cash and unutilised credit facilities to meet financial obligations
when due.
NET INTEREST-BEARING DEBT
1
Includes the EUR 500 million bond issued in May 2024 and the EUR 500 million bond issued in March 2023.
In the second quarter of 2026, Pandora utilised around DKK 9.4 billion in committed financing as well as
an additional DKK 0.9 billion in uncommitted short-term financing. Pandora uses short term financing, when
possible, to optimise interest expenses and enhance the Group’s overall cash position. As of June 2026,
DKK 6.7 billion remains available under undrawn committed loan facilities.
NOTE 5 – TRADE RECEIVABLES
NOTE 6 – GOODWILL
DKK million
2026
30 June
2025
30 June
2025
31 December
Cost at 1 January
5,020
5,126
5,126
Acquisition of subsidiaries and activities in the period
-
164
164
Exchange rate adjustments
96
-264
-270
Cost at the end of the period
5,116
5,027
5,020
No impairment indication was identified based on the information regarding the market and the forecast.
The latest impairment test was carried out 31 December 2025 and the test confirmed substantial headroom
between the carrying amount and the value in use. All the assumptions used are as described in the Annual
Report 2025.
DKK million
2026
30 June
2025
30 June
2025
31 December
Loans and borrowings, non-current
1
9,184
7,767
7,729
Lease liabilities, non-current
4,707
3,926
4,193
Loans and borrowings, current
1,076
3,020
1,627
Lease liabilities, current
1,584
1,400
1,475
Cash
-908
-817
-1,305
Net interest-bearing debt
15,643
15,297
13,719
Unutilised committed credit facilities
6,721
7,088
7,095
DKK million
2026
30 June
2025
30 June
2025
31 December
Receivables related to third-party distribution and wholesale
382
389
544
Receivables related to retail sales
331
272
620
Total trade receivables
714
661
1,163
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • ACCOUNTING NOTES
PAGE 38 OF 43
NOTE 7 - LEASES
Lease liabilities are recognised in loans and borrowings.
RIGHT-OF-USE ASSETS
DKK million
2026
30 June
2025
30 June
2025
31 December
Cost at 1 January
5,335
4,997
4,997
Acquisition of subsidiaries and activities
-
69
69
Additions
1,286
1,055
2,102
Disposals
-33
-40
-97
Depreciation for the year
-768
-718
-1,466
Impairment
-
-5
-11
Exchange rate adjustments
85
-253
-259
Carrying amount
5,903
5,105
5,335
LEASE LIABILITIES
DKK million
2026
30 June
2025
30 June
2025
31 December
Non-current
4,707
3,926
4,193
Current
1,584
1,400
1,475
Total lease liabilities
6,291
5,326
5,668
Depreciation mainly relates to leased stores and is presented in the sales, distribution, and marketing
expenses.
OTHER ITEMS RELATING TO LEASES
DKK million
2026
30 June
2025
30 June
Interest expenses
215
206
Total interest for the period
215
206
TOTAL CASH FLOWS RELATING TO LEASES
DKK million
2026
30 June
2025
30 June
Fixed lease payments
709
636
Interest payments
215
206
Variable leases linked to revenue
267
248
Short-term and low-value leases
49
50
Total cash flows relating to leases
1,240
1,140
NOTE 8 – TRADE PAYABLES
The Group generally accepts that vendors sell off their receivables arising from the sale of goods and
services to the Group to a third party. Pandora has established a supply chain financing programme where
vendors can sell off their receivables from Pandora on attractive terms, based on invoices approved by
Pandora, but at the bank’s sole discretion. The programme does not extend payment terms beyond the
original terms agreed. The payment terms for trade payables within the supply chain financing programme
average around 90 days, while the payment terms for trade payables outside the programme average
around 55 days. This is expected, as the programme is generally more attractive to suppliers with longer
payment terms.
Pandora is not directly or indirectly a party to these agreements. The amounts payable to suppliers included
in the supply chain financing programme are classified as trade payables in the balance sheet as well as in
the statement of cash flows (working capital within cash flows from operations) and amounted to DKK 1.3
billion on 30 June 2026 (31 December 2025: DKK 770 million). Suppliers have received payment from
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • ACCOUNTING NOTES
PAGE 39 OF 43
the bank for all the liabilities under the supplier finance arrangement.
NOTE 9 – CONTINGENT ASSETS AND LIABILITIES
Following a US Supreme Court ruling regarding US IEEPA tariffs imposed under the International
Emergency Economic Powers Act (IEEPA), Pandora established a legal basis to recover previously paid
tariffs through the US Customs and Border Protection (CBP) refund process.
During Q2 2026, Pandora submitted Phase 1 claims amounting to USD 28 million (DKK 180 million), which
had been accepted by CBP. Management concluded that recovery of the submitted and accepted claims
was virtually certain. Accordingly, the recognition criteria were considered met. These were fully settled by
CBP by the end of July 2026.
Consequently, a USD 28 million positive impact was recognised primarily in cost of sales in Q2 2026 as a
reduction of previously recognised tariff costs.
The remaining potential refunds of USD 44 million continued to be disclosed as contingent assets at the
end of Q2 2026 and will be recognised when the related claims become virtually certain. Please also refer
to Note 12 – Subsequent events.
Except for the items mentioned above, there have been no material changes to the contingent assets and
liabilities disclosed in Note 5.1 Contingent assets and liabilities of the Annual Report 2025.
NOTE 10 – STORE NETWORK, CONCEPT STORE DEVELOPMENT
1
Total concept stores
O&O concept stores
Number
of concept
stores
Q2 2026
Number
of concept
stores
Q1 2026
Number
of concept
stores
Q2 2025
Growth
Q2 2026
/ Q1 2026
Growth
Q2 2026
/Q2 2025
Number
of concept
stores
O&O
Q2 2026
Growth
O&O
stores
Q2 2026
/ Q1 2026
Growth
O&O
stores
Q2 2026
/Q2 2025
EMEA
1,418
1,403
1,362
15
56
1,161
17
57
North America
657
646
615
11
42
586
15
46
Latin America
291
293
284
-2
7
203
3
11
Asia-Pacific
445
454
527
-9
-82
263
0
-74
All markets
2,811
2,796
2,788
15
23
2,213
35
40
1
All markets with 10 or more concept stores can be found in the Excel appendix uploaded on www.pandoragroup.com.
NOTE 11 – COMMODITY HEDGING AND DERIVATIVES
It is Pandora’s general policy to hedge at least 70% of the Group’s expected silver, gold and platinum
purchases based on a rolling 12-month production plan. Realised hedges are initially recognised in Group
inventories and will subsequently impact cost of sales when the products are sold. The time lag from
purchase to impact on cost of sales is usually 5 to 10 months.
The table below illustrates when the hedges are estimated to impact our cost of sales up to Q2 2027, as
well as the average hedged purchase price per quarter.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • ACCOUNTING NOTES
PAGE 40 OF 43
HEDGED PRICES FOR PURCHASES AND EXPECTED PHASING INTO COST OF SALES
1
USD / OZ
Realised in
Q2 2026
Hedged
Q3 2026
Hedged
Q4 2026
Hedged
Q1 2027
Hedged
Q2 2027
Silver
Estimated net price, cost of sales
32
~32
~33
~44
~69
Hedged price, purchases
34
70
69
69
-
Gold
Estimated net price, cost of sales
2,913
~3,330
~3,750
~4,300
~4,550
Hedged price, purchases
4,231
4,450
4,700
4,874
4,494
1
The estimated net price in cost of sales reflects the commodity prices that will be recognised in the income statement at the point
of sale, i.e. including the impact of the time lag. The hedge price at the time of purchase reflects the actual hedged price
paid. The estimate is based on our current operating flow, time lag estimates and projected product mix. Platinum hedging is
expected to start in Q3 2026.
As of the end of Q2 2026, Pandora had hedged approximately 75% of expected silver exposures and 70%
of gold exposures for the next 12 months of purchases. Due to the 5 to 10 months lag between realising
hedged purchases to impact on cost of sales, the hedge ratio is effectively 100% of the 2026 exposure in
cost of sales from silver and gold price movements. Furthermore, the hedge ratio for 2027 is expected to
be 90-100% of cost of sales at 65 USD/oz for silver and at 4,400 USD/oz for gold.
DERIVATIVE FINANCIAL INSTRUMENTS
DKK million
Assets
Liabilities
Carrying
amount
Hedge reserve,
net of tax
Q2 2026
Commodities
68
-347
-279
-247
Foreign exchange
18
-68
-50
-39
Interest rate
4
-
4
3
Total derivative financial instruments
90
-415
-325
-284
FY 2025
Commodities
1,689
-1
1,688
1,129
Foreign exchange
10
-33
-23
-18
Interest rate
9
-
9
7
Total derivative financial instruments
1,709
-35
1,674
1,118
Derivative financial instruments are measured at fair value and in accordance with level 2 in the fair value
hierarchy (IFRS 13). See note 4.4 Financial risks and note 4.5 Derivative financial instruments to
the consolidated financial statements in the Annual Report 2025.
NOTE 12 – SUBSEQUENT EVENTS
During Q3 2026, Pandora submitted Phase 2 IEEPA claims of USD 38 million to the US Customs and Border
Protection (CBP). These were subsequently accepted by CBP, with USD 11 million settled to date. Please
refer to Note 9 – Contingent assets and liabilities for further details on the related accounting treatment.
Other than as described in “Other events” in the Management review, Pandora is not aware of events after
30 June 2026, which are expected to materially impact the Group’s financial position.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • ACCOUNTING NOTES
PAGE 41 OF 43
QUARTERLY OVERVIEW
DKK million
Q2 2026
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Financial highlights
Revenue
7,219
7,109
11,859
6,269
7,075
Organic growth, %
3%
2%
4%
6%
8%
Like-for-like, %
1%
0%
0%
2%
3%
Earnings before interest, tax, depreciation and
amortisation (EBITDA)
2,133
2,146
4,617
1,524
1,911
Operating profit (EBIT)
1,463
1,487
3,975
880
1,287
EBIT margin, %
20.3%
20.9%
33.5%
14.0%
18.2%
Net financials
-291
-224
-177
-232
-224
Net profit for the period
875
942
2,848
489
803
FINANCIAL RATIOS
Revenue growth, DKK, %
2%
-3%
-1%
3%
4%
Revenue growth, local currency, %
3%
2%
4%
7%
9%
Gross margin, %
80.5%
79.5%
78.1%
79.3%
79.3%
EBITDA margin, %
29.5%
30.2%
38.9%
24.3%
27.0%
EBIT margin, %
20.3%
20.9%
33.5%
14.0%
18.2%
Effective tax rate, %
25.4%
25.4%
25.0%
24.5%
24.5%
Equity ratio, %
15%
14%
18%
10%
13%
NIBD to EBITDA, x
1.5
1.6
1.3
1.6
1.5
Return on invested capital (ROIC), %
1
39%
39%
41%
43%
44%
Cash conversion incl. lease payments, %
101%
-40%
117%
25%
74%
Net working capital, % of last 12 months’ revenue
2.2%
6.5%
4.1%
7.3%
4.7%
Net working capital excl. derivatives, % of last 12 months’ revenue
2
3.1%
3.5%
-1.1%
4.9%
3.4%
Capital expenditure, % of revenue
7.8%
4.7%
3.3%
8.6%
8.5%
STOCK RATIOS
Total payout ratio (incl. share buyback), %
-
178%
32%
320%
110%
CONSOLIDATED BALANCE SHEET
Total assets
29,232
28,954
29,603
28,436
27,008
Invested capital
19,948
20,110
19,001
20,078
18,850
Net working capital
718
2,095
1,336
2,396
1,513
Net working capital excl. derivatives
2
996
1,142
-352
1,596
1,112
Net interest-bearing debt (NIBD)
15,643
16,090
13,719
17,153
15,297
Equity
4,305
4,020
5,282
2,921
3,550
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows from operating activities
1,831
42
5,301
960
1,388
Capital expenditure, total
563
335
396
538
600
Capital expenditure, property, plant and equipment
441
262
320
390
464
Free cash flows incl. lease payments
1,479
-589
4,632
218
955
1
Last 12 months’ EBIT in % of last 12 months’ average invested capital.
2
Derivative financial instruments are measured at fair value.
For definitions of the performance measures used by Pandora, see note 5.6 Financial definitions to the
consolidated financial statements in the Annual Report 2025.
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • ACCOUNTING NOTES
PAGE 42 OF 43
MANAGEMENT STATEMENT
EXECUTIVE MANAGEMENT
BOARD OF DIRECTORS
12 AUGUST 2026 • COMPANY ANNOUNCEMENT 1015 • INTERIM REPORT Q2 2026 • DISCLAIMER
PAGE 43 OF 43
DISCLAIMER
This Company announcement contains forward-looking statements, including, but not limited to, guidance,
expectations, strategies, objectives and statements regarding future events or prospects with respect to
the Company’s future financial and operating results. Forward-looking statements include, without
limitation, any statement that may predict, forecast, indicate or imply future results, performance or
achievements, and may contain words such as "expect", "estimate", "intend", "will be", "will continue", "will
result", "could", "may", "might" or any variations of such words or other words with similar meanings.
Forward-looking statements are subject to risks and uncertainties that could cause the Company’s actual
results to differ materially from the results discussed in such forward-looking statements. Prospective
information is based on management’s then current expectations or forecasts. Such information is subject
to the risk that such expectations or forecasts, or the assumptions underlying such expectations or
forecasts, may change. The Company assumes no obligation to update any such forward-looking
statements to reflect actual results, changes in assumptions or changes in other factors affecting such
forward-looking statements. Some important risk factors that could cause the Company’s actual results to
differ materially from those expressed in its forward-looking statements include, but are not limited to:
economic and geopolitical uncertainty (including interest rates and exchange rates), financial and
regulatory developments, general changes in market trends and end-consumer preferences, demand for
the Company’s products, competition, the availability and pricing of materials used by the Company,
production and distribution-related issues, IT failures, litigation, pandemics and other unforeseen factors.
The nature of the Company’s business means that risk factors and uncertainties may arise, and it may not
be possible for management to predict all such risk factors, nor to assess the impact of all such risk factors
on the Company’s business or the extent to which any individual risk factor, or combination of factors, may
cause results to differ materially from those contained in any forward-looking statement. Accordingly,
forward-looking statements should not be relied on as a prediction of actual results.