Pandora A/S on Friday reported an 8% rise in second-quarter organic growth, driven by strong U.S. sales and store network expansion, but saw its profit margin narrow amid macroeconomic pressures.
The Danish jewelry maker said revenue for the quarter reached 7.08 billion Danish kroner, up from 6.77 billion a year earlier, while its operating profit (EBIT) margin fell to 18.2% from 19.8%.
The company attributed the decline to headwinds from foreign exchange rates, commodity prices, and tariffs.
Like-for-like sales, which strip out the impact of new store openings, grew 8% in the U.S. and 1% across Europe, according to the company.
"In these turbulent times, we are satisfied with yet another quarter of high single-digit organic growth and strong profitability," Chief Executive Alexander Lacik said in a statement.
"Despite the macroeconomic challenges to top and bottom line, we are confident that we will deliver on our targets for the year driven by an exciting product pipeline, new marketing campaigns and operational agility."
Pandora maintained its full-year forecast for organic growth of 7% to 8% and an EBIT margin of around 24%, despite what it called elevated macro uncertainty.
The company noted that like-for-like growth for July, the start of its third quarter, was around 2%.
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