U.S. shoppers fuel jewelry splurge despite tariff headwinds

Despite economic challenges in Europe and China, U.S. consumers are indulging in jewelry purchases.

Pandora, a Danish jewelry brand, reported strong sales in the U.S. market, which accounts for a significant portion of its revenue.

CEO Alexander Lacik mentioned that while the U.S. market remains robust, Europe is facing mixed results, and China continues to pose challenges.

In the second quarter, Pandora saw an 8% increase in U.S. sales, while China experienced a 15% decline.

Similar trends were observed in major European markets, with sales dropping by high single-digits.

Richemont, owner of the Cartier brand, also noted a 17% increase in U.S. sales despite softer sales in Asia Pacific.

Overall, U.S. jewelry sales showed a 5% rise in the first half of the year, compared to stagnant growth in 2024.

Tariffs remain a concern for jewelry brands like Pandora, affecting their manufacturing operations in Thailand.

Despite absorbing some of the tariff costs, Pandora expects a significant impact on its operating profit margin.

CEO Lacik expressed concerns about tariffs affecting the U.S. consumer and jewelry demand, along with rising input costs.

Tariffs continue to pose challenges for jewelry brands like Pandora, impacting their manufacturing processes.

Pandora revised its tariff guidance, anticipating a substantial financial hit in the coming years.

The company is taking measures to mitigate the impact of tariffs on its operating profit margin.

Higher input costs, including silver and gold prices, are adding to the challenges faced by jewelry brands.

CEO Lacik emphasized the potential impact of tariffs on the U.S. consumer and overall jewelry demand.