S&P Downgrades Pandora’s Outlook, Citing Sales Struggles

By Rob Bates | February 25, 2026

S&P Global Ratings on Monday downgraded its outlook on Pandora from “stable” to “negative,” noting that the company was facing a “highly competitive market characterized by all-time highs in gold and silver prices.”

Pandora’s rating remains BBB, which means it can meet its credit obligations but certain vulnerabilities exist.

The Danish charm maker posted organic growth of 6% in 2025, which was below expectations.

According to S&P’s report, Pandora’s sales have been hurt by weak consumer demand in Europe. The ratings agency called the brand’s decision to focus on the United States generally successful but cautioned that Pandora had posted modest 2% U.S. comp growth in 2025’s fourth quarter, the result of decreased store traffic during the holidays.

S&P analysts also said the company’s solution to record-high silver prices—switching to platinum-plated products—poses “execution risks,” though they opined that consumer perception of platinum as a “more elevated metal” than silver could “help Pandora’s brand appeal.”

The S&P credit report predicted that Pandora’s leverage will spike temporarily, given Pandora has suspended its stock buyback program and has been generally committed to financial discipline.

The analysts’ write-up contained no mention, pro or con, of Pandora’s highly touted lab-grown diamond program. In 2025, lab-grown diamonds made up only 1% of the company’s revenue, according to the jewelry chain’s annual report.

Pandora did not respond to a request for comment by press time.

(Photo courtesy of Pandora)