Pandora Store Closures in China Shake Global Jewelry Market

Gems News: A Surprising Strategic Shift

Danish jewelry powerhouse Pandora is making headlines with its bold decision to shut down as many as 100 underperforming stores in China as part of a global operational streamlining strategy. The announcement stunned the industry, as it came alongside a solid second-quarter performance that showed strong consumer demand in the United States and steady gains across international markets. This Gems News report highlights just how quickly retail landscapes can change, even for dominant players, as they recalibrate to survive and thrive in shifting economic realities.

More than 100 stores across China will be closed in coming weeks
Image Credit: Pandora

Revenue Growth Despite Challenges

For the quarter ending June 30, Pandora reported revenue of DKK 7.08 billion (US$1.11 billion), marking a 4% year-on-year rise on a reported basis and an 8% increase on an organic basis. Like-for-like sales rose 3%, buoyed by a surge in Mother’s Day purchases in the US, while net profit ticked slightly higher to DKK 803 million (US$125 million). However, Pandora acknowledged that its push into lab-grown diamonds—especially through its successful Pandora Lab-Grown Diamonds line—has impacted overall margins, as these products typically generate lower gross returns compared to its traditional offerings.

Focus on US and International Expansion

The United States remains Pandora’s powerhouse, driving global momentum with an 8% like-for-like sales increase during the quarter. Growth was also evident in the “Rest of the World” region at 6%, while Europe posted modest gains of 1%. Despite the smaller European growth rate, individual countries such as Spain, Portugal, Poland, and the Netherlands saw double-digit improvements. Pandora’s brand visibility received an additional boost with the grand opening of its second global flagship store on the Las Vegas Strip, signaling its ambition to elevate brand prestige on a global stage.

Store Network Transformation

The closure of Chinese outlets may appear as a contraction, but Pandora emphasizes it is a recalibration, not a retreat. The brand expects a net opening of 25 to 50 stores worldwide in 2025, down from its earlier projection of 50 to 75. In the bigger picture, Pandora still plans to expand aggressively, adding 400 to 500 concept stores globally by 2026 and upgrading as many as 1,425 existing outlets to improve customer experience and enhance brand presence.

Despites its optimism and smiles, Pandora is actually in a free-falling mode as the global economy is heading on a downward trend
Image Credit: Pandora

Navigating Tariffs and Supply Pressures

Pandora is also grappling with cost headwinds caused by tariffs on goods sourced from Thailand, Vietnam, China, and India. The company estimates additional costs of DKK 200 million (US$31 million) in 2025, potentially escalating to DKK 450 million (US$70 million) by 2026 if tariffs persist. In response, the company is diversifying its supply routes through Canada and Latin America and weighing possible retail price adjustments to offset rising expenses.

Looking Ahead with Innovation

Despite the headwinds, Pandora is doubling down on innovation and consumer engagement. It plans to release two fresh charm collections—Pandora Talisman and Minis—later this year, aimed at younger, budget-conscious audiences. The ongoing “Be Love” campaign also reinforces the brand’s global presence, leaning heavily on influencer collaborations and localized storytelling to deepen consumer connections.

The Bigger Picture

Pandora’s decision to shutter up to 100 stores in China is a dramatic move that reflects the challenges luxury and lifestyle brands face in a rapidly evolving marketplace. With shifting consumer behaviors, tariff pressures, and intensifying competition, agility is no longer optional—it is a necessity. While the closures may seem like a step back, Pandora’s simultaneous push into flagship stores, lab-grown diamonds, and international expansion indicates it is preparing for a more resilient future. Over the next few years, Pandora’s strategy will reveal whether fewer but stronger stores, paired with diversified product lines, can cement its leadership in the fiercely competitive jewelry market. For now, the brand is betting on adaptability and innovation as its keys to long-term dominance.

For the latest on Pandora jewelry, keep on logging to Gems News.