Pandora Reports Lower 1Q and a “5th C” for Its Lab-Grown Diamonds

By Karen Dybis | May 06, 2026

Saying it is facing a challenging consumer environment, Pandora reported lower first-quarter revenue because of “significant external headwinds,” including tariffs, commodities, and foreign exchange, which reduced profitability.

Pandora on May 6 also introduced the idea of a “5th C” to its description of the brand’s lab-grown diamonds. It is adding “carbon footprint” to the classic Cs of diamond quality alongside cut, color, clarity, and carat.

The Copenhagen-based jeweler said first-quarter revenue totaled 7,109 million Danish kroner (about $1.12 billion), down from 7,347 million kroner ($1.16 billion) in the same period a year earlier, a decrease of 3.2%. Despite the decline in revenue, the company said it posted 2% organic growth during the first quarter.

Operating profit (EBIT) for the quarter was 1,487 million kroner ($234 million), compared with 1,641 million kroner ($259 million) in the first quarter of 2025. The EBIT margin narrowed to 20.9% from 22.3% a year earlier.

Performance varied by region. Like-for-like sales declined 2% in North America and Europe, while Asia-Pacific and Latin America recorded growth of 12% and 6%, respectively. Pandora maintained its full-year guidance of -1% to +2% organic growth and an EBIT margin of 21% to 22%.

On an early-morning investor call, company CEO Berta de Pablos-Barbier said Pandora has plans to reenergize its growth.

“The geopolitical backdrop has become more volatile, and the implications for consumer demand are not yet clear,” de Pablos-Barbier said. “We do see the impact of the macro and the K-shaped economy.… What we see is that the consumer sentiment is disproportionately degrading with the middle and the lower income. As a reminder, Pandora over-indexed on middle income. Of course, this macro is not helping us. What we see is a decline in traffic fundamentally.”

As far as its growth strategy, de Pablos-Barbier said Pandora has appointed a new chief product officer, Philippa Newman. The company also is introducing a new program, Pandora Wonders, designed to rapidly change creativity and the perception of its craftsmanship.

Pandora Wonders will start with a playful reinterpretation of the organic pearl, de Pablos-Barbier said, brought to life through an artisanal technique called pearl micro-piercing.

“Each year, we will partner with a leading creative voice to reinterpret the materials we work with and how we craft them through limited-edition capsules,” de Pablos-Barbier said. “This is intending to drive excitement, traffic, and reinforce our growth model of distinctive newness and earned media.”

Pandora Bridgerton Claudia Jessie — *Pandora introduced its limited-edition* Bridgerton jewelry collection in the first quarter of 2026 to generate brand buzz, the company said.

Additionally, Pandora noted it will transition a significant part of the business from silver to platinum-plated in the years to come. Finally, Pandora is beginning with its Italian stores to update interior layouts and refresh some visual merchandising, to better showcase brand collections, such as Talisman and its Bridgerton limited-edition jewelry.

As for that 5th C, Pandora said its carbon footprint will account for emissions generated throughout the diamond production process, from raw materials to polishing. The brand claims a 1 ct. lab-grown diamond it produces carries emissions of 12.58 kilograms of CO2 equivalent, which it says is about 90% lower than a mined diamond of the same size.

The figures are based on lifecycle assessments verified by external auditors, said the company, adding that it plans to publish its methodology. Pandora stopped using mined diamonds in 2021 and now uses lab-grown stones produced with renewable electricity and set in jewelry made from recycled precious metals, according to the company.

“Pandora is about being accessible, and being accessible is also about being transparent. We do think that this will reshape how the environmentally conscious consumers will be choosing within the category. As the leader, we have to be present providing the facts,” de Pablos-Barbier said.

Pandora likely will be moving its lab-grown diamond business from the larger 1 to 2 carat stones to what it calls “micro-fine diamonds,” de Pablos-Barbier added.

“For the consumer, there are not many that come to Pandora to spend $1,000–$1,500 and above. That part of the business we are slowing down and is the big chunk of the decline,” de Pablos-Barbier said. “Where the sweetest spot of pricing is between $250 on rings and a small pendant. That part is growing, and this is the part of the business that we’ll be focusing on from now on.”

(Photos courtesy of Pandora)