COPENHAGEN - The multinational jewellery maker Pandora, which employs about 13,000 people in Thailand, says it has been gaining market share in the United States and plans to keep investing to win new customers there despite the possibility of high import tariffs.
“US consumer demand for the category is not super strong, but the demand for Pandora has been very strong,” CEO Alexander Lacik told Reuters on Wednesday after Pandora announced its results.
He said that could change, though, if steep US tariffs on many countries return.
“If that happens and the demand generally goes down in the US, of course we’ll have to kind of rethink our plan a little bit. But at this moment in time, we’re punching away because it’s working,” Lacik said.
Pandora, listed on the Nasdaq OMX in Copenhagen, reported a first-quarter net profit of 1.1 billion Danish krone (US$168 million), compared with 965 krone in the same period a year earlier. Sales rose 7.3% year-on-year to 7.3 billion krone.
The United States accounted for 32% of Pandora’s revenue in the first quarter, and comparable sales there grew by 11%, making it the strongest major market for the brand.
US so-called “reciprocal” tariffs, including a 36% tariff on Thailand, would add tens of millions of dollars to Pandora’s annual costs, as the company manufactures its charm bracelets and necklaces at two factories in Thailand.
Lacik said he welcomed any efforts to provide stability on trade, as the US and China announced trade talks to take place in Geneva on Saturday.
After hiking prices by an average of 5% in October and a further 4% in April to account for higher silver prices, Lacik said Pandora has not yet decided on further price increases.
“It could be that we move the pricing globally, it could be that we move a bit more in the US, today I don’t know,” he said, adding that Pandora will stick to its “affordable” position relative to rivals.
Pandora employs about 13,200 people in Thailand, primarily in its two manufacturing facilities located in Bangkok and Lamphun.
The company still aims to open a new factory in Vietnam next year, Lacik said. High labour costs and a lack of specialised craftspeople make manufacturing in the US impossible while maintaining profitability, he said.
“Even if you have these very high tariffs in the US I still probably wouldn’t change my supply strategy,” he said.