Pandora, the world's largest jeweler, is advancing its strategy to replace some sterling-silver jewelry with platinum-plated alternatives, despite a significant retreat in silver prices from their multi-year highs, according to CEO Berta de Pablos-Barbier. The company aims to reduce its exposure to volatile precious-metal prices and diversify its material portfolio, with the CEO emphasizing the importance of flexibility and offering diverse materials to consumers [1].
Silver prices, which peaked at over $120 an ounce in January, have since fallen to just under $65 an ounce as of Thursday. In February, when Pandora first announced its move to platinum-plated jewelry, silver was trading at around $80 an ounce. The CEO stated that this material shift is intended to help Pandora maintain high profit margins [1].
Pandora's stock has rebounded 55% over the past three months, following a weak 2025, a recovery that Citi analysts attribute to the recent decline in silver prices. Shares rose 4% in morning trading in Copenhagen after the company reported better-than-expected second-quarter profit, boosted by a one-off U.S. tariff refund. The company has hedged 90-100% of its 2027 silver needs at around $65 per ounce [1].
Pandora raised its full-year 2026 guidance to organic growth of between 0% and 3%, up from the previous range of negative 1% to 2%. Operating profit for the quarter was 1.46 billion Danish crowns ($226 million), with a margin of 20.3%. The company also increased its full-year profit margin guidance to between 22% and 23%, up from 21% to 22%. Organic growth in the quarter was 3%, and like-for-like growth, which excludes new or closed stores, rose 1%. Jefferies analysts noted that the quarter's results and guidance hike were broadly in line with investor expectations [1].
CONCLUSION
Pandora's commitment to platinum-plated jewelry and its proactive hedging strategy have supported a strong rebound in its share price and improved financial guidance. The company's material diversification and margin-focused approach have been well received by analysts and investors, signaling positive market sentiment and expectations for continued stability.