Q2 2026 Pandora AS Earnings Call

August 13, 2026

Speaker #3: Good morning, everyone, and welcome to the conference call for Pandora's Q2 2026 results. I'm Bilal Aziz from the Investor Relations team, and I'm joined here by our CEO, Berta Pablos.

Bilal Aziz: Good morning, everyone, and welcome to the conference call for Pandora's Q2 2026 results. I am Bilal Aziz from the investor relations team, and I am joined here by our CEO, Berta Pablos-Barbier, CFO, Anders Boyer, and the rest of the IR team. As usual, there will be a Q&A session at the end of the call. If you could limit yourself to 2 questions, that would be great. Please pay notice to disclaimer on slide 2 and then turn to slide 3, and I will hand over to Berta.

Speaker #3: CFO Anders Boyer and the rest of the IR team. As usual, there will be a Q&A session at the end of the call. If you could limit yourself to two questions, that would be great.

Speaker #3: Please pay notice to the disclaimer on slide 2, and then turn to slide 3, and I will hand over to Berta.

Speaker #4: Thank you, Bilal. And welcome, everyone. I would like to start with a small reminder and provide some context: 2026 is a year of deliberate change for Pandora.

Berta de Pablos-Barbier: Thank you, Bilal, and welcome everyone. I would like to start with a small reminder, providing some context that 2026 is the year of deliberate change for Pandora. We are rolling our new growth model with greater focus on distinctive design, cultural relevance, and a stronger local execution. In addition, we are also expanding our retail experience with some pilots intending to inspire discovery and giving the consumers more reasons to buy. We will be scaling across markets as we see proof points that is working. Importantly, we are also improving the quality of growth, substantially reducing promotions and heavy discounting. You can see this implemented particularly in our core markets. All these actions, of course, are intending to strengthen brand desirability and relevance and to build a healthier platform for sustainable growth.

Speaker #4: We are rolling out our new growth model, with greater focus on distinctive design, cultural relevance, and a stronger local execution. Now, in addition, we are also expanding our retail experience with some pilots, intending to inspire discovery and give consumers more reasons to buy.

Speaker #4: We will be scaling across markets as we see proof points that it's working. Importantly, we are also improving the quality of growth substantially, reducing promotions and heavy discounting.

Speaker #4: And you can see these implemented particularly in our core markets. Now, all these actions, of course, are intended to strengthen brand desirability and relevance, and to build a healthier platform for sustainable growth.

Speaker #4: I will expand a little bit later, and you will be able to see some examples. But with all that, let me turn to Q2.

Berta de Pablos-Barbier: I will expand a little bit later and you will be able to see some examples. With all that, let me turn to Q2. Q2 played out broadly as we expected. We delivered 1% like-for-like growth and 3% organic growth. Growth in this quarter reflects a deliberate reduction in promotional activity, particularly in core markets. Of course it has moderated growth in the near term, but is the right choice for both the health of the brand and the quality of our growth. Profitability remained strong. EBIT margin benefit from the refund of previously paid US tariff, but even if we adjust through this effect, the business has continued to demonstrate a disciplined cost control and very resilient profitability. Finally, our returns remain high at close to 40% despite the external environment. Let us now move to the next slide, please.

Speaker #4: Quarter 2 played out broadly as we expected, with delivered 1% like-for-like growth and 3% organic growth. Growth in this quarter reflects a deliberate reduction in promotional activity, particularly in core markets, so, of course, it has moderated growth in the near term, but it is the right choice for both the health of the brand and the quality of our growth.

Speaker #4: Profitability remained strong, with EBIT margin benefiting from the refund of previously paid US tariffs. But even if we actually see this effect, the business has continued to demonstrate disciplined cost control and very resilient profitability.

Speaker #4: And finally, our returns remained high at close to 40%, despite the external environment. Let's now move to the next slide, please. I would like to turn to guidance now.

Berta de Pablos-Barbier: I would like to turn to guidance now. We have adjusted both our top line and EBIT margin guidance for the year. For the top line, we are now targeting an organic growth of 0% to +3%, and the main change on this guidance is actually to our like-for-like growth, which we are now increasing to -2% to +1%, and this compares to the previous -3% to 0% on like-for-like. Well, why this upgrade? This upgrade reflects our performance in the H1 of the year. At the same time, we have to be careful because we continue to operate in a volatile macroeconomic and geopolitical environment, and the implications for consumer still remain uncertain. On EBIT margin, the upgrade of our guidance to 22% to 23% from 22% to 23%, compared to the 21%/22% previously.

Speaker #4: We have adjusted both our top-line and EBIT margin guidance for the year. Now, for the top line, we are targeting an organic growth of 0 to plus 3%. The main change in this guidance is actually our like-for-like growth, which we are now increasing to minus 2% to plus 1%. This compares to the previous minus 3% to 0% on like-for-like.

Speaker #4: Now, why is this great? Well, this is great because it reflects our performance in the first half of the year, but at the same time, we have to be careful because we continue to operate in a volatile macroeconomic and geopolitical environment.

Speaker #4: So, the implications for consumers still remain uncertain. Now, on EBIT margin, we have upgraded our guidance to 22 to 23 percent, from 21 to 22 percent previously.

Speaker #4: And this will be taking you through the guidance in a little bit more detail shortly. Now, let me talk a little bit about current trading.

Berta de Pablos-Barbier: Anders will be taking you through the guidance in a little bit more detail shortly. Let me talk a little bit about current trading. The like-for-like growth in the quarter so far has been around mid-single digital levels. Of course, they have benefit from the timing of our end of season sale, which was more weighted towards July this year versus June last year. I want to be very clear, while we start the quarter, and the quarter at the beginning is encouraging, July is not representative of the underlying run rate of the business, so it should not be extrapolated forward. It is important to keep this thing in perspective. Let us get into more detail on the Q2 performance drivers. If we can pass to the next slide, please.

Speaker #4: The like-for-like growth in the quarter so far has been around mid-single digit levels. Of course, there has been benefit from the timing of our end-of-season sale, which was more weighted towards July this year, versus June last year.

Speaker #4: But I want to be very clear: while we start the quarter, and the beginning is encouraging, July is not representative of the underlying run rate of the business.

Speaker #4: So, it should not be extrapolated forward. It is important to keep this thing in perspective. Now, let's get into more detail on the quarter 2 performance drivers, if you can pass to the next slide, please.

Speaker #4: Now, in quarter two, we delivered 1% like-for-like growth. You can see the split between the core and the few with more on this slide.

Berta de Pablos-Barbier: Now, Q2, we deliver a 1% like-for-like growth, and you can see the split between the core and the Fuel with More on this slide. The way to read this result is where we have distinctive product units with high impact activation, we are driving growth. In other areas, there is more work to do, and actions to put this in place are starting with high focus, of course, on our core business. Core delivers -1% like-for-like growth in line with Q1. The growth in the core continued to be supported by the strong performance of the collection launched last year, Talisman. In Moments, our playful aesthetic, the opportunity is still there to bring a stronger, more distinctive newness, and as I said before, this is where all our focus is now.

Speaker #4: Now, the way to read these results is: well, we have distinctive product newness, with high-impact activation, we are driving growth. In other areas, there is more work to do, and actions to put this in place are starting with high focus, of course, on our core business.

Speaker #4: Core delivered minus 1% like-for-like growth, in line with Q1. The growth in the core continued to be supported by the strong performance of the collection loans last year, Talisman.

Speaker #4: Now, in moments, our faithful aesthetic—the opportunity is still there to bring a stronger, more distinctive newness. And, as I said before, this is where all our focus is now.

Speaker #4: Now, in the field with more, where we have a higher mix of distinctive design, we delivered 3% like-for-like growth. And that performance was very much supported by Timeless, with our new Garden of Dreams collections, and Pandora Essence.

Berta de Pablos-Barbier: In Fuel with More, where we have higher mix of distinctive design, we deliver 3% like-for-like growth. That performance was very supported by Timeless, which our new Garden of Dreams collection and Pandora ESSENCE. Let's go into the next slide to talk about markets. Our regional performance in Q2 remained mixed. Let me start with the EMEA region, which is our largest region. There, we deliver a like-for-like growth of -2%. Spain, Poland, Portugal continue to perform very well, and that was offset by weak performance in some of our mature markets like Italy and the UK. Growth in this market, Italy and UK, reflects, as I mentioned, a significant reduction in promotional days versus last year.

Speaker #4: Let's go into the next slide to talk about markets. Our regional performance in Q2 remained mixed. Let me start with the EMEA region, which is our largest region.

Speaker #4: There, we delivered a like-for-like growth of minus 2%. Now, Spain, Poland, and Portugal continue to perform very well, and that was offset by weak performance in some of our mature markets, like Italy and the UK.

Speaker #4: Now, growth in these markets, Italy and UK, reflects, as I mentioned, a significant reduction in promotional days versus last year. In these markets, in addition to implementing the new growth model, we are also piloting an evolved retail experience, with a clear objective of strengthening desirability inspired discovery and give consumers more reasons bringing collections into curated looks, elevating the product presentation, and strengthening visual storytelling.

Berta de Pablos-Barbier: In this market, in addition to implementing the new growth model, we are also piloting an evolved retail experience with a clear objective of a strength and desirability, inspire discovery, and give consumers more reasons to buy Pandora. We are bringing collections into curated looks, elevating the product presentation, and strengthening visual storytelling. Early signs are encouraging, and we will continue to refine and scale what works. In the US, our largest market, the like-for-like growth was flat in the quarter. Performance continued to be impacted by softer consumer sentiment and lower store traffic. But against this backdrop, the brand remains healthy and strong, and we continue to focus on what we can control, strengthening demand creation through more impactful brand activation and locally relevant execution. Overall for the region North America, there was a stable growth around -1%.

Speaker #4: Early signs are encouraging, and we will continue to refine and scale what works. Now, in the US, our larger market, the live-for-like growth was flat in the quarter.

Speaker #4: Now, performance continued to be impacted by softer consumer sentiment and lower store traffic. But against this backdrop, the brand remains healthy and strong. And we continue to focus on what we can control, strengthening demand creation through more impactful brand activation and locally relevant execution.

Speaker #4: So, overall, for the region North America, that was a stable growth around minus 1%. In Latin America, our like-for-like growth accelerated to 18%. The price repositioning that we introduced earlier this year continues to deliver a strong result.

Berta de Pablos-Barbier: In Latin America, our like-for-like growth accelerated to 18%. The price repositioning that we introduced earlier this year continues to deliver strong results. This is supported by a strong local activation and influence engagement, which I'll touch a little bit more later as well. Finally, in Asia, we deliver a strong growth of 10%. Our rollout in Japan continues to progress very well, and we still remain in the early stage of building that brand awareness, that reach through continued increased marketing investment. Let me show some examples of what do we mean by our new growth model is coming to life to drive demand. If we can go to the next slide. I did mention last quarter that we have started to rebalance our marketing investment, and the introduction of the Garden of Dreams campaign is a good example of this shift in action.

Speaker #4: This is supported by strong local activation and influencer engagement, which I'll touch on a little bit more later as well. And finally, in Asia, we delivered strong growth of 10%.

Speaker #4: Our rollout in Japan continues to progress very well, and we still remain in the early stage of building that brand awareness that is reached through continual increased market investment.

Speaker #4: Now, let me show some examples of what we mean by our new growth model coming to life to drive demand. If we can go to the next slide.

Speaker #4: I did mention last quarter that we have started to rebalance our marketing investment. And the introduction of the garden of dreams campaign is a good example of this shift in action.

Speaker #4: The campaign basically brought together some of our most distinctive designs of the season with a stronger, more focused amplification across touchpoints. Events, influencers—you can see some examples in the picture.

Berta de Pablos-Barbier: The campaign basically brought together some of our most distinctive designs of the season with a stronger, more focused amplification across touch points, events, influencers. You can see some examples in the picture. This reinforced a point that I made last quarter. When we bring a strong product design and marketing that is relevant, they work hand in hand and deliver growth. This absolutely translated into growth across all markets, and you can see that reflected in the strong performance of the Timeless collection and therefore our Fuel with More segment in this quarter. Let's go to another example on the next slide. You can see here as well how we are bringing our new growth model to life.

Speaker #4: And this reinforced a point that I made last quarter. When we bring a strong product design and marketing that is relevant, they work hand in hand and deliver growth.

Speaker #4: So, this absolutely translated into growth across all markets, and you can see that reflected in the strong performance of the Timeless Collection and, therefore, our field with more segment in this quarter.

Speaker #4: Let's go to another example on the next slide. You can see here as well how we are bringing our new growth model to life.

Speaker #4: Following the success of Bridgerton in Q1, in July we launched Pandora Wonders—a multi-year creative platform that is designed to build desirability and drive demand through design, craftsmanship, and cultural relevance.

Berta de Pablos-Barbier: Following the success of Pandora x Bridgerton in Q1, in July, we launched Pandora Wonders, a multi-year creative platform that is designed to build desirability and drive demand through design, craftsmanship, and cultural relevance. Our first action was co-created with Harry Lambert and was launched during Paris Haute Couture Week. This is exactly what we want to do more, is really create cultural moments for Pandora, is bringing Pandora into the cultural conversation for distinctive design and high impact activation. This campaign was launched in key markets early, but response has been very strong, particularly on our earned media and PR coverage. It is encouraging and that we are seeing as well the first sign of early engagement from new customers coming to the brand and being attracted by the Pandora brand.

Speaker #4: Now, our first action was co-created with Harry Lambert and was launched during Paris Haute Couture Week. And this is exactly what we want to do more: really create cultural moments for Pandora, bringing Pandora into the cultural conversation.

Speaker #4: Through distinctive design and high impact activation. Now, this campaign was launched in key markets, as early, but response has been very strong. Particularly on our earned media and PR coverage.

Speaker #4: So, it is encouraging, and that we are seeing as well the first sign of early engagement from new customers coming to the brand and being attracted by the Pandora brand.

Speaker #4: Now, what matters most is the long-term opportunity of this platform. This year, we will bring a new creative voice to play and reinterpret our materials and our craftsmanship through a limited edition capsule.

Berta de Pablos-Barbier: What matters most is the long-term opportunity of this platform, as this year we will bring a new creative voice to play and reinterpret our materials and our craftsmanship through limited edition capsule. Of course, you will hear more of how this campaign performed in Q3, which we will have the entire KPIs. Let's go now into the next slide, please. Of course, we do continue to invest in our store network, both expanding our footprint, but most importantly or equally important, elevating the experience of our existing stores. We do continue to roll out our digital screen, our store facade, which is allowing us to bring the collections and the brand storytelling to life with much greater impact. During the quarter, we opened new flagship stores in Barcelona and Milan.

Speaker #4: Of course, you will hear more about how this campaign performed in Q3, when we will have the entire KPIs. Let's go now to the next slide, please.

Speaker #4: Now, of course, we do continue to invest on our store network, both expanding our footprint, but most importantly, or equally important, elevating the experience of our existing stores.

Speaker #4: So, we do continue to roll out our digitally screened store facade, which is allowing us to bring the collections and the brand storytelling to life with much greater impact.

Speaker #4: Now, during the quarter, we opened new flagship stores in Barcelona and Milan. And these stores are a good opportunity to bring together the full breadth and inspiration of Pandora, and set a new benchmark of how consumers experience the brand.

Berta de Pablos-Barbier: These stores are a good opportunity to bring together the full breadth and inspiration of Pandora and set a new benchmark of how consumers experience the brand. I really encourage you, if you find yourself in either city, to visit some of the stores, as you will see and understand better what the great expression of Pandora can be on the brand experience. Let's go to the next slide. I'm just going to bring everything I have just said together by reminding the direction that we set out in February. You will recognize this slide. You have seen some concrete examples of how this is now coming to life. More design-led newness, more effective marketing, and a stronger, locally relevant execution.

Speaker #4: I really encourage you, if you find yourself in either city, to visit some of the stores, as you will see and understand better what the great expression of Pandora can be in the brand experience.

Speaker #4: Now, let's go to the next slide. I'm just going to bring everything I have just been saying together by reminding you of the direction that we set out in February.

Speaker #4: You will recognize this slide. You have seen some concrete examples of how this is now coming to life. More designed newness, more effective marketing, and a stronger locally relevant execution.

Speaker #4: As you see, Garden of Dreams, we showed that and brought it into practice. And also proved that we have the opportunity to get Pandora into new categories—necklaces, rings, etc.—where we still have the opportunity to grow.

Berta de Pablos-Barbier: As you see, Garden of Dreams showed that and brought that into practice, and also proved that we have opportunity to get Pandora into new categories, necklace, rings, et cetera, where you know we have a still opportunity to grow. These actions are in motion. We are seeing encouraging proof points, but they are not yet fully reflected in the performance of the business today. As I said, 2026 is a deliberate year of change. We bring in more discipline and scaling what works. You will hear more on the Q3 where we are bringing together a strategic update, but now we can go into the next slide. Of course, growth is one part of the equation, but of course, as you remember, the biggest second priority for Pandora and for myself is to protect profitability. Equilever is our response to our rising silver prices.

Speaker #4: So, these actions are in motion. We are seeing encouraging proof points. But they are not yet fully reflected in the performance of the business today.

Speaker #4: So, as I said, 2026 is a deliberate year of change. We're bringing more discipline and scaling what works. You will hear more on the quarter 3, where we are bringing together a strategic update, but now we can go into the next slide.

Speaker #4: Now, of course, growth is one part of the equation, but as you remember, the biggest second priority for Pandora and for myself is to protect profitability.

Speaker #4: A key level is our response to our rising silver prices. Now, in February, we introduced the Platinum-plated jewelry on our proprietary Evershine alloy. Which is going to transition a part of our existing white metal portfolio over time into Platinum-plated.

Berta de Pablos-Barbier: In February, we introduced the platinum-plated jewelry on our proprietary EVERSHINE alloy, which is going to transition a part of our existing white metal portfolio over time into platinum plating. This is supporting profitability, but equally and most importantly, it is a compelling consumer proposition. Why? It is bringing platinum, which is a precious metal, into a more accessible format with a strong durability for everyday wear. I think it is important to remind that Pandora has already evolved beyond a single material proposition. That what matters also is that consumer choose Pandora for our design, our craftsmanship, our quality and our meaning across different materials. We do not need to speculate. A proof of that is the success of our gold-plated jewelry, which continues to grow strongly. Of course, as you remember, we have been working on this transition for more than a year.

Speaker #4: Now, this is supporting profitability. But equally, and most importantly, it is a compelling consumer proposition. Why? It's bringing Platinum, which is a precious metal, into a more accessible format.

Speaker #4: With the strong durability for everyday wear. Now, I think it's important to remind that Pandora has already evolved beyond a single material. Proposition. That what matters also is that consumer choose Pandora for our design, our craftsmanship, our quality, and our meaning across different materials.

Speaker #4: We don't need to speculate. A proof of that is the success of our gold-plated jewelry, which continues to grow strongly. Now, of course, as you remember, we have been working on this transition for more than a year.

Speaker #4: This transition has been supported by extensive consumer testing and validation. So, all of the above gives us confidence in the acceptance and adoption of platinum-plating as a wide metal proposition.

Berta de Pablos-Barbier: This transition has been supported by extensive consumer testing and validation. All above give us confidence in the acceptance and adoption of platinum plating as a wide metal proposition. During the quarter as well, we have started our pilot in the Netherlands with five key carriers, four bracelets and one necklace. This is early, but the initial response, I have to say, has been encouraging on the adoption. We are also using the pilot to learn and refine our execution before the global rollout next year. We will extend as well this year with more selected design across more markets, and this will be a good source of learning for us. Important to remember, this is an evolution of our product platform that is bringing greater choice to consumer while strengthening the long-term resilience of our business.

Speaker #4: Now, during the quarter as well, we have started our pilot in the Netherlands with five key carriers—four bracelets and one necklace. Now, this is early, but the initial response, I have to say, has been encouraging on the adoption, and we are also using the pilot to learn and refine our execution before the global rollout next year.

Speaker #4: We will extend as well this year with more selective design across more markets, and this will be a good source of learning for us.

Speaker #4: Now, it's important to remember, this is an evolution of our product platform that is bringing greater choice to consumers, while strengthening the long-term resilience of our business.

Speaker #4: We expect, and it's very obvious, that we'll be the first jewelry brand to bring platinum-plated jewelry to scale. We will be providing more detail on the rollout and as well on the latest financials and EBIT margin implications with our Q3 strategic update.

Berta de Pablos-Barbier: We expect, and it is very obvious, that we will be the first jewelry brand to bring platinum-plated jewelry to scale. We will be providing more detail on the rollout and as well on the latest financials and EBIT margin implications with our Q3 strategic update. But on that note, I would like to now hand over to Anders to take you through the rest of the presentation.

Speaker #4: But on that note, I'd like to now hand over to Anders to take you through the rest of the presentation.

Speaker #2: Thank you both, and good morning, everyone. Please turn to slide 14. Berta has already commented on the top lines, so I'll focus on a couple of the other financial metrics.

Anders Boyer: Thank you, Berta, and good morning, everyone. Please turn to slide 14. Berta has already commented on the top lines. I will focus on a couple of the other financial metrics. The key message for the quarter is that margins remain solid, that is both on the gross margin and EBIT margin level, and that we continue to manage all of the external headwinds quite effectively. As I am sure you have read, we did get a one-off benefit this quarter from the partial refund of our US tariff claim, and we broke it out in the impact out on the margin for you so you can track the underlying performance. This one-off meant that our gross margin was up 120 basis points in the quarter.

Speaker #2: And the key message for the quarter is that margins remain solid. That's both at the gross margin and EBIT margin level, and that we continue to manage all of the external headwinds quite effectively.

Speaker #2: And as I'm sure you've read, we did get a one-off benefit this quarter from the partial refund of our US tariff claim. And we broke it out in the impact on the margins for you, so you can track the underlying performance.

Speaker #2: This one-off meant that our gross margin was up 120 basis points in the quarter. But even when you exclude the one-off, you'll see that our gross margin was still above 78%.

Anders Boyer: Even when you exclude the one-off, you will see that our gross margin was still above 78%, and thereby only down around 100 basis points compared to last year, despite that we faced just under 300 basis points of external headwinds. So quite a strong margin and highlighting the good cost efficiencies that is still being delivered, but also a deliberate reduction in promotions as Berta said. Next slide, please. Here we break down the revenue growth in the quarter as usual. We have talked about the like-for-like building block already, so I will touch on some of the other elements in the bridge. On the network expansion, the purple building block at 4%, that continues to track well, generating healthy top-line growth in white space areas, and with no cannibalization, and generating very healthy margins.

Speaker #2: And thereby only down around 100 basis points compared to last year, despite the fact that we faced just under 300 basis points of external headwinds. So, quite a strong margin, and highlighting the good cost efficiencies that are still being delivered, but also a deliberate reduction in promotions, as Berta said.

Speaker #2: Next slide, please. Here, we break down the revenue growth in the quarter. As usual, we've talked about the like-for-like building block already, so I'll touch on some of the other elements in the bridge.

Speaker #2: On the network expansion, the purple building block is at 4%. That continues to track well, generating healthy top-line growth in white space areas, and with no cannibalization.

Speaker #2: And generating very healthy margins. You also notice that this quarter specifically, we saw a two percentage point drag from the bucket that we call 'sell-in and other,' and that's two elements to this.

Anders Boyer: You also notice that this quarter specifically, we saw 2 percentage points drag from the bucket that we call sell-in and other. There are two elements to this. One, is just phasing between quarters that we will always see. Secondly, some of it is linked to lower sell-in to certain partners. Next slide, please. On the EBIT margin, performance was strong. The EBIT margin was up 210 basis points year-over-year. As you can see from the bridge here, it was helped by the partial refund of our claim on the US tariffs, and that accounted for 250 basis point on EBIT margin level. It is a one-off, of course, and there will be more of that coming in H2 2026, and I will speak about that shortly.

Speaker #2: One, it's just phasing between quarters, but that we will always see. And then, secondly, some of it is linked to lower sell-in to certain partners.

Speaker #2: Next slide, please. On the EBIT margin, performance was strong. The EBIT margin was up 210 basis points year over year. And as you can see from the bridge here, it was helped by the partial refund of our claim on the US tariffs.

Speaker #2: And that accounted for 250 basis points on the EBIT margin level. It is a one-off, of course, and there will be more of that coming in the second half of 2026, and I'll speak about that shortly.

Speaker #2: If you exclude that one-off impact, you can calculate that the EBIT margin was broadly in line with last year. And some of you will probably point out that even that was a bit better than what we had communicated about phasing through the year earlier on.

Anders Boyer: If you exclude that one-off impact, you can calculate that the EBIT margin was broadly in line with last year. Some of you will probably point out that even that was a bit better than what we have communicated about phasing through the year earlier on, and that is fair. The reason is that just like in Q1, we did see some cost-phasing benefit of around 200 basis points in the quarter. That phasing includes the level of marketing spend where we ended up deciding to spend, which you can also see in the announcement today, that it is a bit below last year. But that phasing will be reversed in Q3 and Q4, and then be neutral for the full year.

Speaker #2: And that's fair. And the reason is that, just like in Q1, we did see some cost-facing benefit of around 200 basis points in the quarter.

Speaker #2: And that facing includes the level of marketing spend. Where we ended up deciding to spend, which you can also see in the announcement today, is a bit below last year.

Speaker #2: But that facing will be reversed in Q3 and Q4, and then be neutral for the full year. And overall, yes, you should read from this that we are, of course, keeping a tight control on our costs in this current subdued revenue and macro environment.

Anders Boyer: Overall, you should read from this that we are, of course, keeping a tight control on our cost in this current subdued revenue and macro environment. We will continue to offset a large proportion of the external headwinds that we are facing. With that, let's move on to the guidance. As Berta already said, we've upgraded both our revenue and EBIT margin guidance. Let me tackle revenue first. We upgraded our organic growth guidance by 1 percentage point on both low end and high end to now being +2% to -1%. Sorry, 2% to 0% to 3%. This upgrade is driven by higher like-for-like expectations for the full year, where we now see like-for-like growth of between +1% and -2% versus previously between flat and down to -3%.

Speaker #2: And we will continue to offset a large proportion of the external headwinds that we are facing. And with that, let's move on to the guidance.

Speaker #2: As Berta already said, we've upgraded both our revenue and EBIT margin guidance. And let me tackle revenue first. We upgraded our organic growth guidance by 1 percentage point on both the low end and high end, to now being plus 2 to minus 1.

Speaker #2: And this, sorry, yeah, to 2—sorry, to 0 to 3%. And this upgrade is driven by higher like-for-like expectations for the full year, where we now see like-for-like growth of between plus 1 and minus 2, versus previously between flat and down to minus 3.

Speaker #2: And the low end of that range continues to factor in the fact that the consumer environment remains weak, and the geopolitical uncertainty remains quite high.

Anders Boyer: The low end of that range continues to factor in the fact that the consumer environment remains weak and the geopolitical uncertainty remains quite high. We do not know how this will play out for consumers, even on a short time horizon. The high end of +1% basically calls for similar growth in the H2 as we saw in the H1. So keeping the run rate of our like-for-like growth to what we've already seen. We do acknowledge that our comp base is getting easier in the H2 of the year. Here's a couple of thoughts on how to think about that. First of all, we are planning a promotional detox in the H2 of the year to further protect brand equity.

Speaker #2: And we do not know how this will play out for consumers, even on a short time horizon. The high end of plus 1 basically calls for similar growth in the second half as we saw in the first half.

Speaker #2: So, keeping the run rate of our like-for-like growth to what we've already seen, we do acknowledge that our comp base is getting easier in the second half of the year.

Speaker #2: And here are a couple of thoughts on how to think about that. First of all, we are planning a promotional detox in the second half of the year, to further protect brand equity.

Speaker #2: And secondly, if you dig into the comp base, you will see that the two-year stack mostly gets easier in the US. But the US is, at the same time, the market with particularly high macro and geopolitical uncertainty.

Anders Boyer: Secondly, if you dig into the comp base, you will see that the 2-year stack mostly gets easier in the US. But the US is at the same time the market with particularly high macro and geopolitical uncertainty. It's also the market where we see the K-shaped economy impacting our consumer base. Lastly, we do not expect to repeat the growth levels that we've seen in Latin America and Asia Pacific in the H1 of the year. Some of this will naturally moderate. When we say this, that's not to ignore the impact of the initiatives that we're working on to reignite the growth engine. But these will take time to feed through into sustainable improvement in like-for-like every quarter. As we did say back in February, 2026 is a transition year.

Speaker #2: And it's also the market where we see the K-shaped economy impacting our consumer base. Lastly, we do not expect to repeat the growth levels that we've seen in Latin America and Asia-Pacific in the first half of the year.

Speaker #2: Some of this will naturally moderate. And when we say this, that's not to ignore the impact of the initiatives that we're working on to reignite the growth engine.

Speaker #2: But these will take time to feed through into sustainable improvement in like-for-like every quarter. And as we did say back in February, 2026 is a transition year.

Speaker #2: As you can also see in the bridge, we have increased our network guidance to plus 3% organic growth contribution, up from 2% initially. And this increase is then offset by slightly lower sell-in to certain partners, and we now expect sell-in and other to be around minus 1%.

Anders Boyer: As you can also see in the bridge, we have increased our network guidance to +3% organic growth contribution up from 2% initially. This increase is then offset by slightly lower sell-in to certain partners. We now expect sell-in and others to be around -1%, then those two components net out. If we could go to the next slide, please. On the EBIT margin guidance, we've upgraded it to 22% to 23% from 21% to 22% before. So, an increase of 100 basis points in both the low end and high end of the range. This change in the guidance you can see here relating to the purple box that we call a tariff refund, the 100 basis points being the income we expect from the refund of tariffs that we have previously paid.

Speaker #2: And then those two components nets out. And then if we can go to the next slide, please. On the EBIT margin guidance, we've upgraded it to 22 to 23% from 21 to 22% before.

Speaker #2: So, an increase of 100 basis points in both the low end and high end of the range. And this change in the guidance, you can see here, relates to the purple box that we call the tariff refund.

Speaker #2: And the 100 basis points is the income we expect from the refund of tariffs that we have previously paid. We already got an impact, which we just talked about, in the second quarter.

Anders Boyer: We already got an impact, as we just talked about in Q2, equivalent to just around 50 basis points of full year EBIT margin impact. We expect to have another similar 50 basis points positive impact sometime during the H2 of the year. Again, this tariff refund is a one-off benefit for the year, so keep that in mind when you think out to 2027. All other building blocks are broadly unchanged. On that note, I will hand back over to Berta.

Speaker #2: Equivalent to just around 50 basis points of full-year EBIT margin impact. And we expect to have another similar 50 basis points positive impact sometime during the second half of the year.

Speaker #2: And again, this tariff refund is a one-off benefit for the year, so keep that in mind when you think out to 2027. All other building blocks are broadly unchanged.

Speaker #2: And on that note, I'll hand back over to Berta.

Speaker #1: Thank you very much, Ander. So let me just conclude, and I would like to leave you with a few key points. Yes, we are making progress on the priorities we set out in February.

Berta de Pablos-Barbier: Thank you very much, Anders. Let me just conclude. I would like just to leave you with a few key points. Yes, we are making progress on the priorities we set out in February. The actions are now in motion across the business, and we are seeing encouraging proof points. There is still more to do to translate this consistently into a stronger like-for-like growth. At the same time, we are also driving healthier growth through greater promotional discipline, and we do continue to demonstrate a strong financial control. Based on our performance and outlook, we are upgrading both our top line and EBIT margin guidance for the year. We are progressing our transition to platinum plating, which is an important evolution of our product platform that will diversify our metal mix and strengthen the resilience of the business over time.

Speaker #1: The actions are now in motion across the business, and we are seeing encouraging proof points. Now, there is still more to do to translate this consistently into a stronger like-for-like growth.

Speaker #1: Now, at the same time, we are also driving healthier growth through greater promotional discipline. And we do continue to demonstrate strong financial control.

Speaker #1: Now, based on our performance and outlook, we are upgrading both our top-line and EBIT margin guidance for the year. We are progressing our transition to platinum plating, which is an important evolution of our product platform that will diversify our metal mix and strengthen the resilience of the business over time.

Speaker #1: We will be saying more, much more about it in the next phase—on this phase, next phase for Pandora and all our strategic priorities—with our Q3 update.

Berta de Pablos-Barbier: We will be saying much more about it on this phase, next phase for Pandora and all our strategic priorities with our Q3 update. If you allow me, before we move to Q&A, I will just briefly like to touch on an announcement that we made last Thursday regarding you, Anders. As you know, Anders has been an integral part of Pandora's development, and I am really personally very grateful for everything that he has contributed to Pandora. We do, of course, respect his decision to retire from operating roles. It is his choice, and we wish him all the very best. Of course, at the same time, we are very pleased to welcome Paulo Garcia. He will be joining Pandora in October. We will have a leadership transition that will run very smoothly between both of them.

Speaker #1: Now, if you allow me, before we move to Q&A, I would just briefly like to touch on an announcement that we made last Thursday regarding you, Ander.

Speaker #1: As you know, Anders has been an integral part of Pandora's development, and I am really, personally, very grateful for everything that he has contributed to Pandora.

Speaker #1: We do, of course, respect his decision to retire from operating roles. It's his choice, and we wish him all the very best. Of course, at the same time, we are very pleased to welcome Paulo Garcia.

Speaker #1: He will be joining Pandora in October. We will have a leadership transition that will run very smoothly between both of them. And of course, this does not change our strategy.

Berta de Pablos-Barbier: This does not change our strategy, does not change our priorities or our ambition for Pandora. We do know where we are going. We remain fully focused on our execution to deliver that with discipline and consistency. With that, please let me thank you for your attention. I think it is time to open for the Q&A.

Speaker #1: It does not change our priorities or our ambition for Pandora. We do know where we are going. We remain fully focused on our execution to deliver that with discipline and consistency.

Speaker #1: And with that, please let me thank you for your attention. I think it's time to open the floor for the Q&A.

Speaker #3: Thank you. We will now start the Q&A session. If you wish to ask a question, please press five-star on your telephone keypad. To withdraw your question, you may do so by pressing five-star again.

Operator: Thank you. We will now start the Q&A session. If you wish to ask a question, please press 5 star on your telephone keypad. To withdraw your question, you may do so by pressing 5 star again. We kindly ask that you please limit yourself to two questions and then rejoin the queue for additional questions. Our first question will be from the line of Thomas Chauvet from Citi. Please go ahead. Your line will now be unmuted.

Speaker #3: We kindly ask that you please limit yourself to two questions, and then rejoin the queue for additional questions. Our first question will be from the line of Thomas Schubert from Citi.

Speaker #3: Please go ahead, your line will now be unmuted.

Thomas Chauvet: Good morning. Thanks for taking my questions. Before my questions, Anders, let me thank you for all the support over the years and best wishes for your retirement from executive life. I think you have many other exciting projects, and so all the best for that. My two questions are as follows. The first one on the US like-for-like improvement in a still difficult consumer sentiment environment. What are you seeing across traffic, conversion, average tickets? Berta, are you starting to see tangible benefits from the recent product and marketing initiatives that give you a greater confidence about a rebound in this market, maybe in the back half of the year? Secondly, on the tariffs topic, but maybe for next year. You indicated in the release of lower tariffs rates of 12.5% on US imports from Thailand going forwards, down from 19%.

Speaker #2: Good morning. Thanks for taking my questions. And before my questions, Anders, let me thank you for all the support over the years, and best wishes for your retirement from executive life.

Speaker #2: I think you have many other exciting projects, and so all the best for that. My two questions are as follows. The first one: On the US LFL improvement in a still difficult consumer sentiment environment, what are you seeing across traffic, conversion, and average tickets? And Berta, are you starting to see tangible benefits from the recent product and marketing initiatives that give you greater confidence about a rebound in this market, maybe in the back half of the year?

Speaker #2: And secondly, on the tariffs topic, but maybe for next year, you indicated in the release a lower tariff rate of 12.5% on U.S. imports from Thailand going forward, down from 19%.

Speaker #2: I mean, how much do you expect that to support your gross margin next year? And could you comment on the implications for Vietnam as well?

Thomas Chauvet: How much do you expect that to support your gross margin next year? Could you comment on the implications for Vietnam as well? Is there any change there in that new crafting facilities tariffs for the US imports? Also, could you comment whether that facility is also

Speaker #2: Is there any change there in the new crafting facilities tariffs for US imports, and could you also comment on whether that facility is adapting or shifting to the platinum-plated strategy as planned, given it was built for a slightly different purpose—I guess more for a silver-type of business?

Thomas Chauvet: adapting, shifting to the platinum plated strategy as planned, given it was built for a slightly different purpose, I guess more for a silver type of business. Thank you.

Speaker #2: Thank you.

Speaker #1: Thank you so much. Let me start with your question about the US. What we are seeing in the US is that consumer sentiment continues to be low.

Berta de Pablos-Barbier: Yeah, thank you, Thomas. Let me start with your question of the US. What we are seeing in the US is that the consumer sentiment continues to be low, the macroeconomic continues to be difficult for the increase of discretionary spend, and this is something that you see. What we see on the industry, on the total jewelry and accessories industry, the traffic is slightly sluggish. We are slightly behind on traffic, but we are seeing a strong increase on our conversion, on our average basket for the US business, and this is both on our offline and our online store. So everything that we see indicates that what we are doing with the distinctive newness and the new marketing model is working in the US. We see that as well reflecting on the performance of the Timeless collection, which was growing as well in this market.

Speaker #1: The macroeconomic environment continues to be difficult for the increase of discretionary spend, and this is something that you see. What we see in the industry, in the total jewelry and accessories industry, is that traffic is slightly flat-ish.

Speaker #1: We are slightly behind on traffic, but we are seeing a strong increase in our conversion and in our average basket for the US business. This is both in our offline and online stores.

Speaker #1: So, everything that we've seen indicates that what we are doing with the distinctive newness and the new marketing model is working in the U.S.

Speaker #1: We see that as well, reflecting on the performance of the Timeless collection, which was growing as well in this market. So, yes, the proof points are building up.

Berta de Pablos-Barbier: So yes, the proof points are building up, that is why we are confident for the remaining, not only of the year, but of the years to come.

Speaker #1: That's why we are confident not only for the remainder of the year, but for the years to come.

Speaker #2: Thank you so much. On the other question, thank you for your kind words. On the tariffs, when we communicated targets back in February—high-level guidance on EBIT margin for 2027 and the midterm—that was based on the assumption of the old tariffs, if I can call it that, around the 19% to 20% level.

Anders Boyer: Thank you so much. On the other questions, thank you for your kind words. On the tariffs, when we communicated targets back in February, a high level guidance on the EBIT margin for 2027 and midterm, that was based on the assumption of the old tariff, if I can call it that, around 19% to 20% level. So with the new tariffs in place, that gives roughly a 70 to 80 basis point of margin upside on gross margin going forward compared to what we have said previously. So we will take that. On Vietnam, the tariff level between Vietnam and Thailand are very much aligned, so there is no sort of competitive difference from that point of view, from producing in the two countries. And Vietnam is definitely part of our overall plan on how we build up much more plating capacity going forward.

Speaker #2: So, with the new tariffs in place, that gives roughly a 70 to 80 basis point margin upside on gross margin going forward compared to what we've set previously.

Speaker #2: So we'll take that. On Vietnam, the tariff levels between Vietnam and Thailand are very much aligned, so there's no competitive difference from that point of view in producing in the two countries.

Speaker #2: And Vietnam is definitely part of our overall plan on how we build up much more plating capacity going forward. There will be some plants that have a higher share of plating than others, like today, where one of the factories in Thailand—the Double B factory—is only doing plating.

Anders Boyer: There will be some plants that have a higher share of plating than others, like today, where one of the factories in Thailand, the Double B factory, is only doing plating. So there will be some differences between them, but there is no disadvantage on Vietnam from the tariffs.

Speaker #2: So there will be some differences between them, but there’s no disadvantage for Vietnam from the tariffs. Thank you. Thank you.

Lars Topholm: Thank you.

Bilal Aziz: Thanks, Thomas. Our next question will be from the line of Lars Topholm from DNB Carnegie. Please go ahead, your line will now be unmuted.

Speaker #3: Thanks, Thomas. Our next question will be from the line of Lars Top Moe from DNB Carnegie. Please go ahead, your line is now unmuted.

Speaker #4: Yes, congrats, first of all, on a great quarter. And from me also, thanks for everything. You still look way too young to retire, but that's how it is.

Lars Topholm: Yes, congrats first of all on a great quarter, and from me also, Anders, thanks for everything. You still look way too young to retire, but that's how it is. I'll also limit myself to two questions, please. One goes for the moving parts in 2027, where you specifically call out that the price of silver, everything else equal, helps you with 200 basis points on the gross margin compared to the assumptions behind the 12% minimum margin, 14% underlying. I wonder if you can give a similar specification of the tailwinds relating to gold, relating to FX, and relating to platinum, so we sort of know what moving parts you are working with. Then a second question, maybe for you, but I just wonder if you can put some more color on what you are seeing from the platinum plating in Holland.

Speaker #4: I'll also limit myself to two questions, please. So, one goes for the moving parts in 2027, where you specifically call out that the price, everything else equal, helps you with 200 bps on the gross margin compared to the assumptions behind the 12% minimum margin and 14% underlying.

Speaker #4: I wonder if you can give a similar specification of the tailwind relating to gold, relating to FX, and relating to platinum, so we sort of know what moving parts you are working with.

Speaker #4: And then a second question, maybe for you, Berta. I just wonder if you can put some more color on what you are seeing from the platinum plating in Holland.

Speaker #4: And I know it's early days and not that many SKUs, but have you learned anything that surprised you—pleasantly or the opposite? And what are sort of the key findings?

Lars Topholm: I know it's early days and not that many SKUs, but have you learned anything that surprised you pleasantly or the opposite? What are sort of the key findings? Are there any sort of hard numbers you can share so far? Thanks.

Speaker #4: And are there any sort of hard numbers you can share so far? Thanks.

Speaker #2: Thank you for those questions, Lars. And I'll put the 'you look younger' into my scrapbook, so we have a particular thank you for that.

Anders Boyer: Thank you for those questions, Lars, and I will put you look younger into my scrapbook, so a particular thank you for that. Fair question on the margins. Starting with 2027, silver, just around 200 basis points as we wrote in the announcement. The logic in that is that the original assumption was a silver price of $82. Now we have hit around $65, so that is a $17 obviously, upside. With a sensitivity next year in the 12%, 13%, 14% range over basis points per one US dollar, you get to around 200 basis points of upside on that. Gold and platinum is much smaller numbers, but still an upside of, in round numbers, for both gold and platinum, 25 to 30 basis points of upside at the current spot prices each next year.

Speaker #2: Yeah, fair question on the margins. Starting with 2027, silver—yeah, just around 200 basis points, as we wrote in the announcement. And the logic in that is that the original assumption was a silver price of 82.

Speaker #2: Now we've hitched around 65. So that's a $70 or $17, obviously, upside. And with a sensitivity next year in the 12%, 13%, 14% range—basis points per one US dollar—you get to around 200 basis points of upside.

Speaker #2: On that, then on gold and platinum, it's much smaller numbers, but still an upside. So, in round numbers, for both gold and platinum, there's 25 to 30 basis points of upside at the current spot prices.

Speaker #2: Each next year, and then, as we just spoke about just before, we have a 70 to 80 basis points of tariff upside as well if they remain at the current levels.

Anders Boyer: As we just spoke about just before, we have a 70 to 80 basis points of Tariff upside as well, if they remain at the current levels that was announced by the US government over the summer. Foreign exchanges is a small change in that. If on a pure technical upgrade that will give just a little bit above 300 basis points of margin upside next year on an all other things basis. Of course, we think that it makes more sense to give you a broader update on the margin guidance for 2027 and midterm as part of the strategic update that will be coming in November, because of course there is other moving parts than commodities and silver. So we want to fade it into the broader update, which feels like a natural time to do it, come November.

Speaker #2: That was announced by the US government over the summer. Foreign exchange is a small change. That on a pure technical upgrade, that would be give just a little bit about 300 basis points of margin upside next year on a so on all other things basis, but of course, we think that it makes more sense to give you an broader update on the margin guidance for '27 and midterm as part of the strategic update that we will be becoming in November because, of course, there's other moving parts than commodities and silver.

Speaker #2: So we want to fade it into the broader update, which feels like a natural time to do it, come November.

Speaker #4: Yeah, that makes sense. But in connection with that, because in your part of the presentation, you also mentioned underlying margin drivers, contributing 250 bps.

Lars Topholm: Yep. That makes sense. In connection with that, because in your part of the presentation, you also mentioned underlying margin drivers contributing 250 basis points. Since we are on that topic, maybe you can specify what those are. There is some channel mix, there is probably some price, there is some efficiency gains. There is an effect from Fuel with More outperforming core. Can you quantify that bridge a little bit more?

Speaker #4: So, since we’re on that topic, maybe you can specify what those are. I mean, there are some channel mix effects, there's probably some pricing, and there are some efficiency gains.

Speaker #4: There's an effect from fuel with more outperforming core. Can you quantify that bridge a little bit more?

Speaker #2: Yeah, you're thinking about specifically the second quarter margin?

Anders Boyer: Yeah. You are thinking about specifically then the Q2 margin.

Speaker #4: Yeah, because I assume some of these drivers are also relevant when we look into 2027.

Lars Topholm: Yeah, because I assume some of these drivers are also drivers which are relevant when we look into 2027.

Speaker #2: Yeah, fair comment. By far, the majority of what sits in that sort of net operating levers in the second quarter—that upside there—that's cost-facing.

Anders Boyer: Fair comment. By Far, the majority of what sits in that sort of net operating levers in the Q2, that upside there, that's cost phasing to the tune of 200 basis points, specifically in Q2. If we drill one more step down into that cost phasing, more than half of it is marketing. We have been spending less marketing in the H1 compared to last year. In the H2, we will be spending more than what we did last year. On that note, there's no other structural changes for the 2027 margin apart from commodities and tariffs.

Speaker #2: To the tune of 200 basis points, specifically in Q2. And again, if we drill one more step down into that cost phasing, more than half of it is marketing, where we have been spending less on marketing in the first half compared to last year.

Speaker #2: And in the second half, we will be spending more than what we did than what we did last year. So on that note, there's no sort of other structural changes for the '27 margin apart from commodities and tariffs.

Lars Topholm: Okay. Thanks.

Speaker #4: Okay.

Speaker #1: Good.

Speaker #4: Thanks.

Speaker #1: On your second question, we actually become the third question. We are on the platinum-plated. So you said it, Lars, I think it is the silvery early days.

Berta de Pablos-Barbier: On your second question, it will actually become the third question. On the platinum plated. You said it, Lars, I think it's still very early days. What was a pleasant surprise was to see that it was confirming the hypothesis, and it was according to the expectations of all the data that we had previously collected with our more than 30,000 consumers. That is actually confirming what we initially expected. Just to give you a little bit more flavor, as a reminder, we are doing a test on both our physical stores and on our online stores. On our physical stores, the platinum plated products are priced at the same price as silver. We are learning about what is the demand when we price at the same. On the online, we're actually getting a different price testing as well.

Speaker #1: But what was a pleasant surprise was to see that it was confirming the hypothesis, and it was according to the expectations of all the data that we had previously collected with our more than 30,000 consumers.

Speaker #1: So, that is actually confirming what we initially expected. Just to give you a little bit more flavor, as a reminder, we are doing a test on both our physical stores and on our online stores.

Speaker #1: In our physical stores, the platinum-plated products are priced at the same price as silver. So we are learning about what the demand is when we price them the same.

Speaker #1: And online, we're actually getting a different price testing as well. So more to come in our Q3 announcement on all the learnings from that part.

Berta de Pablos-Barbier: More to come on our Q3 announcement on all the learnings on that part. So far, confident.

Speaker #1: But so far, confident.

Speaker #4: Thank you very much. I'll jump back into the Q.

Lars Topholm: Thank you very much. I will jump back into the queue.

Speaker #2: Thanks, Lars. Our next question will be from the line of Frederick Novest from Morgan Stanley. Please go ahead. Your line will now be unmuted.

Bilal Aziz: Thanks, Lars. Our next question will be from the line of Frederick Wild from Morgan Stanley. Please go ahead, your line will now be unmuted.

Speaker #4: Hi, good morning. Thank you very much for taking my questions. I have two, if that's okay. Firstly, on the 2026 like-for-like guidance, you're now guiding from minus 2 to plus 1.

Frederick Wild: Hi. Good morning. Thank you very much for taking my questions. I have two, if that is okay. Firstly, on the 2026 like-for-like guidance. You are now guiding from -2% to +1% for the year, which given the flat like-for-like in H1 implies roughly -4% to +1% or 2% in H2. At the same time, Q3 current trading is already running at mid-single digits, albeit with some benefit from phasing of commercial activities. Perhaps could you help us understand the degree of conservatism embedded in the guidance and specifically what would drive the slowdown implied for the remainder of the second half and in Q4 in particular? My second question is on Europe. Berta, you mentioned earlier today that the recent heatwaves have weighed on store traffic in Europe with some consumers staying at home and shopping online instead.

[Analyst] (Morgan Stanley): Hi. Good morning. Thank you very much for taking my questions. I have two, if that is okay. Firstly, on the 2026 like-for-like guidance. You are now guiding from -2% to +1% for the year, which given the flat like-for-like in H1 implies roughly -4% to +1% or 2% in H2. At the same time, Q3 current trading is already running at mid-single digits, albeit with some benefit from phasing of commercial activities. Perhaps could you help us understand the degree of conservatism embedded in the guidance and specifically what would drive the slowdown implied for the remainder of the second half and in Q4 in particular? My second question is on Europe. Berta, you mentioned earlier today that the recent heatwaves have weighed on store traffic in Europe with some consumers staying at home and shopping online instead.

Speaker #4: For the year—which, given the flat like-for-like in H1, implies roughly minus four to plus one or two in H2. But at the same time, Q3 current trading is already running at mid-single digits, albeit with some benefit from phasing of commercial activities.

Speaker #4: So perhaps could you help us understand the degree of conservatism embedded in the guidance, and specifically what would drive the slowdown implied for the remainder of the second half and in Q4 in particular?

Speaker #4: And then my second question is on Europe. Berta, you mentioned earlier today that the recent heatwaves have weighed on store traffic in Europe, with some consumers staying at home and shopping online instead.

Speaker #4: So could you help us understand how material that impact that impact has been on recent like for like trends? And are you seeing online growth broadly of setting the weaker store traffic or has there been a net negative impact on like for like?

Frederick Wild: Could you help us understand how material that impact has been on recent like-for-like trends? Are you seeing online growth broadly offsetting the weaker store traffic, or has there been a net negative impact on like-for-like? As temperature have normalized now, I think, have you seen any corresponding improvements in store traffic? Thank you.

[Analyst] (Morgan Stanley): Could you help us understand how material that impact has been on recent like-for-like trends? Are you seeing online growth broadly offsetting the weaker store traffic, or has there been a net negative impact on like-for-like? As temperature have normalized now, I think, have you seen any corresponding improvements in store traffic? Thank you.

Speaker #4: And as temperatures have normalized now, I think, have you seen any corresponding improvement in store traffic? Thank you.

Speaker #2: Yeah, hi Cedric. I'll take the first one. On the guidance, you're broadly in the right ballpark in terms of the implied like-for-like growth for the rest of the year, with the high end implying around one-ish.

Bilal Aziz: Yeah. Hi, Frederick. I will take the first one on the guidance. You are broadly in the right ballpark in terms of the implied like-for-like growth for the rest of the year with the high end implying around one-ish. I will just kind of repeat what Anders said. There is a kind of deliberate detox on the promotion plan, even for the remainder part of the year, that will act as a small part of a drag against that.

Speaker #2: I'll just kind of repeat what Anders said. There is a kind of deliberate detox on the promotion planned even for the remainder of the year.

Speaker #2: That will act as a small part of a drag against that, just to protect the brand equity going forward. And I also appreciate your comment on kind of current trading, but again, we said please don't take that as a run rate.

Bilal Aziz: To protect the brand equity going forward. I also appreciate your comment on kind of current trading, but again, we said, please don't take that as a run rate right now. There is some phasing element in that as well. Then last but not least, we are still relatively cautious on the broader macro environment in the US as well. We will see how that plays out. So many moving pieces. I appreciate the math is what it is as well. But there are many factors at play here.

Speaker #2: Right now, there’s some phasing element in that as well. And then last but not least, we’re still relatively cautious on the broader macro environment in the US as well.

Speaker #2: We'll see how that plays out. So many moving pieces. I appreciate that the math is what it is as well. But there are many factors at play here.

Speaker #1: Yes. And then on the traffic, listen, is it substantially impacting the Q2 results? The answer is no. And did we see some changes in those weeks?

Berta de Pablos-Barbier: Yes. Then on the traffic listen, is it substantially impacting the Q2 results? The answer is no. Did we see some changes on those weeks? Yes. What we are seeing is that if I take the full Q2 traffic in 7 out of our 10 markets, the traffic for the industry, so this is either the jewelry and accessories or the retail, has been negative on the Q2, and we are pretty much either online or slightly negative, depending on which are the countries. As far as our e-commerce performance, it is pretty much online for the total quarter with our offline, with again, maybe on those 2 weeks, yes, we saw a slight peak, but we are just talking weeks out of 3 months, so not a substantial impact.

Speaker #1: Yes. I mean, what we are seeing is that if I take the full Q2 traffic, in seven out of our ten markets, the traffic for the industry—so this is either the jewelry and accessories or retail—has been negative.

Speaker #1: On the quarter two, we are pretty much either online or slightly negative depending on which countries. As far as our e-commerce performance, it's pretty much online for the total quarter.

Speaker #1: With our offline—again, maybe on those two weeks, yes, we saw a slight peak, but we are just talking weeks out of three months.

Speaker #1: So not a substantial impact.

Speaker #2: Thanks, Fran. Our next question will be from the line of Christian Godickson from SEB. Please go ahead, your line will now be unmuted.

Bilal Aziz: Thanks, Far. Our next question will be from the line of Kristian Godiksen from SEB. Please go ahead, your line will now be unmuted.

Speaker #4: Thank you. I usually don't do these congratulations, but Anders, I also want to congratulate you on a strong heritage and performance, and on your well-deserved choice to retire.

Kristian Godiksen: Thank you. I usually don't do this, congratulations, but Anders, I also want to congratulate on a strong heritage and performance based on your well-deserved choice to retire. To the two questions I'll limit myself to this time. First of all, maybe could you comment a bit on whether there's a structurally higher run rate and hence impact from new stores as you allude to, you upgrade your guidance from network expansion without upgrading the number of new stores. That was the first question. Then the second question, I guess that's for you, Berta. Could you maybe comment a bit more on when should we look, in terms of timing of the inflection points, in terms of like-for-like improvement in the mature markets such as Italy and the UK and France based on all the initiatives you are doing? Thank you.

Speaker #4: So, to the two questions I'll limit myself to this time. First of all, maybe could you comment a bit on whether there is a structurally higher run rate and hence impact from new stores, as you allude to in your upgrade or guidance from network expansion, without upgrading the number of new stores?

Speaker #4: So that would be the first question. And then the second question, I guess that's for you, Berta. Could you maybe comment a bit more on the when should we look in terms of timing of the inflection points in terms of like for like improvement in mature markets such as Italy and the UK and France based on the all the initiatives you are doing?

Speaker #4: Thank you.

Speaker #2: And thank you for that question, and likewise, it's a pleasure to have been working with you. But yeah, you're right that we are upgrading the network guidance, but keeping the same number of stores that we opened this year.

Anders Boyer: Thank you for that, Kristian, and likewise, a pleasure to have been working with you. You're right that we are upgrading the network guidance but keeping the same number of stores that we opened this year. When we set out the guidance at the start of the year, we took a probably somewhat deliberate cautious stance on this, given that it's a transition year, but also the uncertain consumer environment, and the network assumptions and how much growth each store would be generating was part of that. Since that, so far, this seven, eight months that has passed so far, the rollout of new store has tracked at the upper end of what we had sort of planned for internally. That has averaged, so the new stores are generating a bit more revenue than we had in the original 2% assumption.

Speaker #2: But when we set out the guidance at the start of the year, we took a probably somewhat deliberate, cautious stance on this, given that it's a transition year, but also the uncertain consumer environment and the network as substance, and how much growth each store would be generating was part of that.

Speaker #2: And then, since that so far, these seven or eight months that have passed so far, the rollout of new stores has tracked at the upper end of what we had sort of planned for internally.

Speaker #2: And that has added some of the new stores, generating a bit more revenue than we had in the original 2% assumption. So we're basically just bringing the assumptions now in line with the actual delivery for the first seven months of the year.

Anders Boyer: We're basically simply bringing the assumptions now in line with the actual delivery for the first seven months of the year.

Speaker #4: Okay. So maybe just, Anders, before Berta, can I maybe just follow up? Just so—basically to understand, I guess many of the stores are opening in some of the new markets.

Kristian Godiksen: Okay. So maybe just, Anders, before Berta, can I maybe just follow up? Just to basically understand, I guess, many of the stores are opening in the new markets. Is it fair to assume that you are confident or optimistic or a bit more optimistic on the growth contribution from network expansion in these new markets? Is that the way to look at it as well?

Speaker #4: So is it fair to assume that you're confident, or optimistic, or a bit more optimistic, about the growth contribution from network expansion in these new markets?

Speaker #4: Is that the way to look at it as well?

Anders Boyer: I think in general, the way to think about it is that when we set out the original guidance, we had an assumption of both, of course, when do the stores open, and then what kind of revenue do they generate from day one. On both, we were a little bit earlier in terms of opening and they generate a bit more revenue than what we had dared hope for in this macroeconomic environment. That is somewhat, I would say, in the decimals, when we made the original guidance, it was 2 point something that rounded down to 2. Now, with the updated assumptions, it is 2 point something that rounds just to a 3. So that is also, of course, one of the consequences when you report without a decimal, and you cannot see that.

Speaker #2: The in general, the way to think about it is that there would be when we set out the original guidance, we had an assumption of both, of course, when do the stores open and then what kind of revenue do they generate from day one.

Speaker #2: And on both, we sort of a little bit earlier in terms of opening them, and they generate a bit more stores than what—sort of a bit more revenue than what we had hoped for in this macroeconomic environment.

Speaker #2: And there's somewhat, I would say, in the decimals. When we made the original guidance, it was 2 point something that rounded down to 2.

Speaker #2: And now, with the updated assumptions, it's 2 point something that rounds to just a 3. So that's also, of course, one of the consequences when you report without a decimal and you can't see that.

Speaker #4: Okay. Thank you.

Kristian Godiksen: Okay. Thank you.

Speaker #1: Yeah. And for your other question, basically when you look at the performance of our core market, it is directly linked to the performance of our core collections.

Berta de Pablos-Barbier: Yeah, as for your other question. Basically, when you look at how the performance of our core market is directly linked to the performance of our core collections. What we need to do is to start improving the performance of the existing core collections. As we said already, this has come from new distinctive units being reinjected to refresh the core collections. What we are starting to see, we are now focusing on that, and you will start seeing improvement over time. When we look at the time it takes us to develop collection, the biggest impact will start from 2027. But of course, that does not mean that we are doing nothing this year. We are just trying to maximize the impact of what we had on our plan.

Speaker #1: So what we need to do is to start improving the performance of the existing core collections, and as we said already, this comes from bringing new distinctive newness, being reinjected to refresh the core collections.

Speaker #1: What we are starting to see, we are now focusing on that. And you will start seeing improvement over time. When we look at the time it takes us to develop collection, the biggest impact will start from 2027.

Speaker #1: But of course, that doesn't mean that we are doing nothing this year. We are just trying to maximize the impact of what we have on our plan.

Speaker #1: One example of that I shared with you was Wonders, where we created a lot of noise and achieved an early media value record for Pandora—10 times more than the previous activation.

Berta de Pablos-Barbier: One example of that I shared with you was Pandora Wonders, where we created a lot of noise and achieved earned media value record for Pandora, 10 times more than previous activation. We continue to focus on driving that perception as we bring the new collections.

Speaker #1: So, we continue to focus on driving that perception as we bring the new collections.

Kristian Godiksen: That is very clear. I think you said earlier on our conference call that we could see, I think it was in connection when Philippa was hired, that we could see some newness in Q4. Is that still in place for timing-wise that you will see some of the newness in Q4?

Speaker #4: Okay. Very clear. You said I think you said earlier on a conference call that you could see when I think it was a connection when Philippa was hired that we could see some newness in Q4.

Speaker #4: Is that still in place, timing-wise, that you will see some of the newness in Q4?

Speaker #1: She's working hard on that, so that still remains part of the plan. And then let's see how much volume we can bring. One is to bring the design, and the other is to make sure that we can scale that at a substantial level.

Berta de Pablos-Barbier: She is working hard on that. That still remains some of the plan, and then let us see how much volume we can bring. One is to bring the design, and the other is to make sure that we can scale that at a substantial level.

Speaker #4: Perfect, thanks a lot. I'll jump back.

Kristian Godiksen: Perfect. Thanks a lot. I will jump back.

Speaker #2: Thanks, Christian. Our next question will be from the line of Darian from Bank of America. Please go ahead, your line will now be unmuted.

Bilal Aziz: Thanks, Kristian. Our next question will be from the line of Daria from Bank of America. Please go ahead. Your line will now be unmuted.

[Analyst] (Bank of America): Hi, this is Daria from Bank of America. Thank you for taking my questions. I also wanted to say thank you to Anders for all the years of collaboration. I have two questions. Could you please share the split between volume, price, and mix in Q2, but also in your current trading number? Then a clarification on the EBIT margin guidance upgrade. Considering also better like-for-like growth guidance, why is the underlying margin assumptions not really moving considering the upgrade feels driven mostly by the tariff refund? Thank you very much.

Daria Nasledysheva: Hi, this is Daria from Bank of America. Thank you for taking my questions. I also wanted to say thank you to Anders for all the years of collaboration. I have two questions. Could you please share the split between volume, price, and mix in Q2, but also in your current trading number? Then a clarification on the EBIT margin guidance upgrade. Considering also better like-for-like growth guidance, why is the underlying margin assumptions not really moving considering the upgrade feels driven mostly by the tariff refund? Thank you very much.

Speaker #5: Hi, this is Daria from Bank of America. Thank you for taking my questions. I also wanted to say thank you to Anders for all the years of collaboration.

Speaker #5: And I have two questions. Could you please share the split between volume, price, and mix in the second quarter, but also in your current trading numbers?

Speaker #5: And then a clarification on the EBIT margin. With the guidance upgrade, considering also the better like-for-like growth guidance, why are the underlying margin assumptions not really moving, considering the upgrade feels driven mostly by the tariff refund?

Speaker #5: Thank you very much.

Speaker #2: Thank you for that. Kind words, Daria. On the second quarter, the overall volume, sort of total, is slightly positive in the quarter. When I'm thinking about total revenue growth, if you look specifically at like-for-like units, it's down 2 points.

Anders Boyer: Thank you for that kind words, Daria. On Q2, the overall volume of total is slightly positive in the quarter, when I'm thinking about total revenue growth. If you look specifically at like-for-like units, it's down 2 points, and then you have +3 on the pricing. That takes us to the 1% like-for-like for the quarter. On current trading, we don't comment on that, but structurally, you should think the same on the pricing side, because we didn't do any pricing in between. Then on the underlying, you're right, technically, with 1 percentage point higher like-for-like growth, there's a little bit of operating leverage, all other things equal in that. Of course, it's not something that moves several percentage points on the margins. That would be in the decimals. But we have decided two things to note here.

Speaker #2: And then you have plus 3 on the pricing; then that takes us to the 1% like-for-like for the quarter. And then on the current trading, we don't comment on that, but structurally, you should think the same on the pricing side because we didn't do any pricing in between.

Speaker #2: Then, on the underlying, you're right—1%. Higher like-for-like growth; there's a little bit of operating leverage, all other things equal, in that.

Speaker #2: We, it's—of course, it's not something that moves several percentage points on the margins; that would be in the decimals. But we have decided—two things to note here.

Speaker #2: We have decided to invest a little bit more in reigniting our growth engines in different parts of the world. That includes Asia, where we want to put even more muscle behind that, becoming an even bigger growth driver in the years to come.

Anders Boyer: We have decided to invest a little bit more in reigniting our growth engines in different parts of the world. That includes Asia, where we want to put even more muscle behind that becoming an even bigger growth driver in the years to come. Secondly, we have bits and pieces on the freight cost from the Middle East crisis. It's not big money in our context. But net, that means that the underlying margin is the same despite the revenue upgrade.

Speaker #2: And then secondly, we have a bit and pieces on the freight cost from the Middle East crisis. It's not a big amount in our context, but that means that the underlying margin is the same despite the revenue upgrade.

Speaker #5: Thank you.

[Analyst] (Bank of America): Thank you.

Daria Nasledysheva: Thank you.

Speaker #2: Thanks, Darian. Our next question will be from the line of Anthony Cherchafri from BNP Paribas. Please go ahead, your line will now be unmuted.

Bilal Aziz: Thanks, Daria. Our next question will be from the line of Anthony Charchafji from BNP Paribas. Please go ahead. Your line will now be unmuted.

Speaker #6: Yes, thank you. Good morning. It's Anthony Cherchafri at BNP Paribas. I have two questions, please. The first one is on the tariff reimbursement, which is—yeah, which is an interesting, yeah, an interesting deal that you've done with a third party.

Anthony Charchafji: Yes, thank you. Good morning. It is Anthony Charchafji at BNP Paribas. I have 2 questions, please. The first one is on the tariff reimbursement, which is an interesting deal that you have done with a third party and leaving USD 0.23 to the dollar on the table. Just curious to know if you felt that there were a sense of risk on those reimbursement, and why did you took the decision to book the cash in Q2 and Q3. Is it a sign that potentially you could resume a share buyback as early as 2027. My second question is again on the 2027 margin comments, maybe just on the commodity part, because I have quite a bit of a delta versus your indication of 250, 260 basis points upside to the guidance on commodity. Could you just remind me the moving part.

Speaker #6: And leaving 23 cents to the dollar on the table. So, just curious to know if you felt that there was a sense of risk on those reimbursements, and why you took the decision to book the cash in Q2 and Q3?

Speaker #6: Is it a sign that potentially you could resume share buybacks as early as 2027? And my second question is again on the 2027 margin comments—maybe just on the commodity part—because I have quite a bit of a delta versus your indication of 200 and 50, 260 bps upside to the guidance on commodity.

Speaker #6: Could you just yet remind me of the moving part? Because, yeah, if you switch one third of the silver consumption and it's switched to platinum, I get something closer to 400 bps instead of 250 bps.

Anthony Charchafji: Because if you switch one third of the silver consumption and it is switched to platinum, I get something closer to 400 basis points instead of 250 basis points. Maybe just some color on those sensitivity would be very helpful for me to understand why I got it wrong. Thank you.

Speaker #6: So maybe just, yeah, just some color on those sensitivities would be very helpful for me to understand why I got it wrong. Thank you.

Speaker #2: All right. Thank you for those questions, Anthony. Let me start with the tariffs. So, yeah, you're right. We settled the claim back in early May.

Anders Boyer: All right. Thank you for those questions, Anthony. Let me start with the tariff. You are right, we sold the claim back in early May based on an evaluation of the risk of whether the fund would actually ever come back. We had quite extensive discussions about that, both on how long time it could take before cash would be returned if ever, by the US government. Therefore, we decided to monetize the claim and sell it. So we got the money, it was received, the $55 million US we received back in H1 of May. We know that several companies or many companies around the world have decided to do that, but it was based on a risk reward, compared to the discount that we had to sell the claim at.

Speaker #2: Based on an evaluation of the risk of whether the fund would actually ever come back, we had quite extensive discussions about that—both how long it could take before cash would be returned, if ever, by the US government.

Speaker #2: And therefore, we decided to monetize the claim and sell it. So we got the money that was received, the 55 million US dollars we received back in the first part of the first half of May.

Speaker #2: And we know that at several companies, or many companies around the world, that decided to do that. But it was based on a risk-reward compared to the discount that we had to sell the claim at.

Speaker #2: The accounting around this under IFRS is actually rather complex, but all the cash is sitting in the bank account. They have been received, and then under IFRS...

Anders Boyer: The accounting around this is, on the IFRS, is actually rather complex, but all the cash is sitting on the bank account. They have been received. Then on the IFRS accounting, how that works is that even though we have sold the claim on a non-recourse basis, so it is full and final, then we can only take the income, in the P&L, as such as the refund administrate process in the US is progressing. That led to $28 million coming into the books in Q2, and we expect the majority to come here in the second half of the year. Maybe in Q3, maybe in Q4. That still remains to be seen. On the share buyback, you are right, of course. Everything helps when we are getting cash into the bank, but it is still too early to go down the line of reinitiating a share buyback program.

Speaker #2: Accounting, how that works is that even though we've sold the claim on a non-recourse basis, so it's full and final, we can only take the income in the P&L as the refund administrative process in the US is progressing.

Speaker #2: That led to $28 million coming into the books in Q2. And we expect the majority to come in the second half of the year—maybe in Q3, maybe in Q4.

Speaker #2: That still remains to be seen. And on the share buyback—you're right, of course, everything helps with getting cash into the bank, but it's still too early to go down the line of reinitiating a share buyback program.

Speaker #2: I think if you do a little bit of math with the 2027 margin, you would see that we would be above the leverage range next year.

Anders Boyer: I think if you do a little bit of math, with the 2027 margin, you would see that we would be above the leverage range, next year, if we started out the share buyback program, either this year or next year, in fact. That does not mean that we would not end up concluding that a share buyback program next year might be appropriate, even though it would lead to leverage being a little bit above the range for a short time as we transition into platinum plated. But that is too early to decide, and communicate anything on them. That will be a part of the 2027 communication. Of course, also when we come out with a full year guidance for next year in February, next year, we will talk about how we look at it at that point in time.

Speaker #2: If we started out the share buyback program, either this year or next year, in fact, that doesn't mean that we wouldn't end up concluding that a share buyback program next year might be appropriate, even though it would lead to leverage being a little bit above the range for a short time as we transition into platinum plate.

Speaker #2: But that's too early to decide and communicate anything on that. That will be a part of the 2027 communication and, of course, also when we come out with a full-year guidance for next year in February. Next year, we will talk about how we look at it at that point in time.

Speaker #2: But I think it's very important to stress it's not a question of if we start the share buyback programs again; it's only a question of the timing during this transition into platinum-plated for a part of the jewelry.

Anders Boyer: I think it is very important to stress it is not a question of if we start the share buyback programs again, it is only a question of the timing during this transition into platinum plated for a part of the jewelry. Then the consequent increase in leverage that we will see, just by pure math, because the margin will go down next year compared to this year. So more to come on that. Then on the 2027 margin, high level, the ways to think about the silver sensitivity, if we take that one specifically, then in 2026, so this year, the sensitivity is around that if the silver moves one US dollar, then the margin changes 20 basis points. Now, with the level of transition that we are doing from silver to platinum, then next year, that sensitivity goes from the 20 to around 13, 14 basis points.

Speaker #2: And then, the consequent increase in leverage that we will see—just by pure math—because the margin will go down next year compared to this year.

Speaker #2: So, more to come on that. And then on the 2027 margin, I think the way to think about the silver sensitivity—if we take that one specifically—then in 2026, so this year, the sensitivity is around that, if silver moves one US dollar, then the margin changes 20 basis points.

Speaker #2: And now, with the level of transition that we're doing from silver to platinum, then next year that sensitivity goes from the 20 to around 13–14 basis points.

Anders Boyer: That's just step 1, and then the sensitivity will go down even further next year. If you're using 13 basis points sensitivity per one US dollar, then the upside on the margin next year would be USD 17 lower, from 82 to 65. That's now being hedged times 13, and that gives you 240 basis points, to be precise, but let's call it 200 basis points of margin upside. I'm happy to go through the math on gold and platinum, or we can follow up separately afterwards with IR. There, the sensitivity is obviously still much lower. That would give 25 to 30 basis points uplift on each.

Speaker #2: That's just step one. And then the sensitivity would go down even further next year. But if you're using 13 basis points sensitivity per $1 USD, then the upside on the margin next year would be $17 lower, from $82 to $65.

Speaker #2: That's now being hedged times 13. And that gives you 214 basis points, to be precise. But let's call it 200 basis points of margin upside. Then I'm happy to go through the math on gold and platinum, or we can follow up separately afterward with IR. But then the sensitivity is obviously still much lower.

Speaker #2: And that would give 25 to 30 basis points uplift on each. And there, the spot price—the prices that we're using—is that in the original announcement back in February, we used a gold price of just above $4,700.

Anders Boyer: There, the spot price, the prices that we're using is that in the original announcement back in February, we used a gold price of just above 4,700 and getting to the 25 to 30 basis points upside, we are using a gold spot price of 4,400. Equivalent on platinum is from 2,400 originally to now around 1,600 spot price for platinum. Again, I'm happy to go through it and reconcile the math that you had in your mind.

Speaker #2: And getting to the 25 to 30 basis points upside, we are using a gold spot price of $4,400. And equivalent on platinum, it's from $2,400 originally to now around $1,600 spot price for platinum.

Speaker #2: But again, I'm happy to go through it and reconcile the math that you had in your mind.

Speaker #1: Okay, thank you, Anders. But just to confirm, in terms of silver usage, your assumption still takes into account the reduction of one-third.

Anthony Charchafji: Okay. Thank you, Anders. Just to confirm, in term of silver usage, your assumption still take into account the reduction of one third?

Speaker #2: Yeah. Exactly.

Anders Boyer: Yeah. Exactly.

Speaker #1: Okay. Okay. Thank you.

Anthony Charchafji: Yeah. Okay. Thank you.

Speaker #3: Thanks, Anthony. Our next question will be from the line of Andre Torman from Danske Bank. Please go ahead, your line will now be unmuted.

Bilal Aziz: Thanks, Anthony. Our next question will be from the line of André Thormann from Danske Bank. Please go ahead. Your line will now be unmuted.

Speaker #4: Thanks a lot for taking my questions. I have two as well. So, first question is regarding this promotional detoxing you mentioned, Anders, in the second half.

André Thormann: Thanks a lot for taking my questions. I have two as well. First question is regarding this promotional detoxing you mentioned, Anders, in the H2 to come. Can you maybe tell a bit more about where this will be in the world? Then second question is regarding the US like-for-like in the H2. Can you maybe put some words on why we won't see a significant uptick in like-for-like with comps coming significantly down in the US for the H2? That's my questions.

Speaker #4: To come, can you maybe tell a bit more about where this will be in the world? And then, second question is regarding the U.S. like-for-like in the second half.

Speaker #4: Can you maybe explain why we won't see a significant uptick in like-for-like sales, given that comps are coming down significantly in the US for the second half?

Speaker #4: That's my questions.

Speaker #5: Yeah. So why don't I start with the retail discount? I would say that what you will see you should expect to see this is pretty much across all markets but we have as well a higher focus on our mature markets.

Berta de Pablos-Barbier: Yeah. Why don't I start with the retail discount? I would say that what you will see, you should expect to see this is pretty much across all markets, but we have as well, a higher focus on our mature markets. You should expect to see a reduction on the UK, on Italy, et cetera, as the biggest reduction. Of course, when you look at the retail discounts, you will see a big decline. What we are seeing is a big decline on the retail discount level on Latam. As a reminder, there was a change from a high-low positioning in the previous year to the beginning of this year, getting the same pricings in line with the rest of the pricing corridors on the rest of the world and substantially reducing the promotion to nearly half of the day.

Speaker #5: So you should expect to see a reduction in the UK, in Italy, etc., as the biggest reduction. Of course, when you look at the retail discounts, you will see a big decline; and what we are seeing is a big decline in the retail discount level in LatAm. As a reminder, that was a change from a high-low positioning in the previous year to the beginning of this year, getting the same pricing in line with the rest of the pricing corridors in the rest of the world and substantially reducing the promotion to nearly half of the days.

Speaker #5: So, long answer short, it's across all markets, but we are focusing heavily on the mature markets, which is where we saw the highest increase in the last two years.

Berta de Pablos-Barbier: Long answer short, it is across all markets, but we are focusing heavily on the mature market, which is where we saw the highest increase in the last 2 years.

Speaker #2: And sorry, Andrea, I didn't catch the second question.

Bilal Aziz: I am sorry, André, I did not get the second question.

Speaker #4: So, I just asked why we won't see a strong like-for-like tick up in the second half for the US, when the comps are much lighter.

André Thormann: I just asked why we will not see a strong like-for-like tick up in H2 for US when the comps are much lighter.

Speaker #5: Okay, let me start, and again, Anders, you can complement. I think we discussed it in the call. I mean, we are not claiming victory yet.

Berta de Pablos-Barbier: Okay. Let me start, and again, Anders, you can complement. I think we discussed it in the call. We are not claiming victory yet. We are seeing strong signs that our model is working, but if you look at it, our like-for-like growth on core is still negative. I can look, of course, at what is happening on the collections and the base assortment in this market. We are sensible, and we remain prudent with our approach. Yes, the comps get easier, but at the same time, and I answered just before, we are seeing a decline on our promo detox as well, which in the US it was really on our offline, but also on our online, on our e-commerce store where we were promoting it slightly heavily on Q3, adding more days in addition to the Black Friday weeks, et cetera.

Speaker #5: We are seeing a strong sign that our model is working. But if you look at it, our like-for-like growth on core is still negative.

Speaker #5: I can look, of course, at what is happening on the collections and the base assortment in this market. So we are sensible, and we remain prudent.

Speaker #5: With our approach—yes, we are, the comps get easier—but at the same time, and I answered just before, we are seeing a decline in our promo detox as well, which in the US was really on our offline, but also on our online, on our e-commerce store, where we were promoting slightly more heavily in Q3, adding more days in addition to the Black Friday weeks, etc.

Speaker #5: So, those days of extra promo outside of the big commercial periods will go away, and that will have an impact. And of course, last but not least, this is a market where the consumer sentiment is still low—at record lows.

Berta de Pablos-Barbier: So those days of extra promo outside of the big commercial periods will go away, and that will have an impact. And of course, last but not least, this is a market where the consumer sentiment is still low, at record lows. We see jewelry increasing, and then we could be very happy about that. But when you double click on that, it is actually on the high income. So the accessible jewelry market is still declining, and this was in Q1 and Q2. So really we are just looking at the facts and making sensible decisions for the rest of the year.

Speaker #5: We see jewelry increasing, and then we could be very happy about that. But when you double-click on that, it's actually on the high income.

Speaker #5: So the accessible jewelry market is still declining, and this was in Q1 and Q2. So really, we are just looking at the facts and making sensible decisions for the rest of the year.

André Thormann: All right. Thank you so much.

Speaker #4: All right. Thank you so much.

Speaker #3: Thanks, Andrea. Our next question will be from the line of Last Top One from DNB Carnegie. Please go ahead, your line is now unmuted.

Bilal Aziz: Thanks, André. Our next question will be from the line of Lars Topholm from DNB. Please go ahead. Your line will now be unmuted.

Lars Topholm: Just a couple of brief follow-ups, please. On the current trading and this uptick from Q1 to the mid-single digit level in the beginning of Q3, can you comment on, is this broad-based? Is it specific markets driving this? And a second follow-up question. Berta, you gave a comment on the performance in mature markets being related to how the core performs. So I just wonder if you can give some numbers on the distribution between core revenue and Fuel with More revenue in some of your less mature markets like Latam, Japan, Spain, compared to the group average, where Fuel with More is 26%. Is that a significantly higher share in some of these younger markets? Thanks.

Speaker #4: Just a couple of brief follow-ups, please. On the current trading and this uptick from Q1 to the mid-single-digit level at the beginning of Q3, can you comment on whether this is broad-based?

Speaker #4: Is it specific markets driving this? And second follow-up question, Berta, you gave a comment on the performance in mature markets being related to how the core performs.

Speaker #4: So just wondering if you can give some numbers on the distribution between core revenue and Fuel With More revenue in some of your less mature markets, like LatAm, Japan, and Spain, compared to the group average, where Fuel With More is 26%.

Speaker #4: Is that a significantly higher share in some of these younger markets? Thanks.

Bilal Aziz: I'll take the first one, Lars. It is relatively broad based. The commercial phasing had quite a consistent effect across all regions, really. Yep. It is on to Berta.

Speaker #2: I'll take the first one. Lars, so it's relatively broad-based. The commercial phasing had quite a consistent effect across all regions, really. Yep, on to Berta.

Berta de Pablos-Barbier: Yeah, I think on the thing you should say, when you look at all the mature markets and when you look at NAM and EMEA, and given that is really the biggest part of our market, the split is the same. Where we are seeing slightly different is when we start new markets like Japan, where we are seeing that it is slightly more, let us say, balance between the core and the Fuel with More. But on the majority of our business is exactly the same.

Speaker #5: Yeah, I think the thing you should expect when you look at all the mature markets, and when you look at NAM and EMEA—given that that is really the biggest part of our market—the split is the same.

Speaker #5: What we are seeing is slightly different when we start new markets like Japan, where we are seeing that it's slightly more, let's say, balanced between the core and the fuel, with more.

Speaker #5: But the majority of our business is exactly the same.

Lars Topholm: This would also imply profitability incrementally is better in like Latam, Japan, since Fuel with More has higher margins.

Speaker #4: So, this would also imply that profitability, incrementally, is better in like LatAm and Japan, since fuel with more has higher margins?

Lars Topholm: This would also imply profitability incrementally is better in like Latam, Japan, since Fuel with More has higher margins.

Anders Boyer: It is close to each other. I think the gross margin between the two are high or high. But strictly speaking, you are right.

Speaker #2: They're close to each other, so I think the gross margin between the two is high—well, both are high—but strictly speaking, you're right.

Speaker #4: Okay. Thanks, a lot.

Lars Topholm: Okay. Thanks a lot.

Speaker #3: Thanks, Lars. Our next question will be from the line of Christian Godicksen from SAB. Please go ahead, your line will now be unmuted.

Bilal Aziz: Thanks, Lars. Our next question will be from the line of Kristian Godiksen from SEB. Please go ahead. Your line will now be unmuted.

Speaker #4: Thank you. Also, a couple of follow-ups from me. So, maybe could you comment a bit on the relatively weak performance in the online channel this year?

Kristian Godiksen: Thank you. Also, a couple of follow-ups from me. Could you comment a bit on the relative weak performance in the online channel this year, compared to the underperformance of the physical stores, contrary to the last many years? Secondly, could you elaborate a bit maybe on the, I noticed a jump in the unaided brand awareness in the mature markets for the younger groups in H1 2026. It would be nice to have some more flavor on that. Thirdly, and lastly, comment a bit on the lower sell-in. I guess it is a bit contrary to me based on the performance of wholesale actually for a very long time, obviously has underperformed, but this quarter actually it is doing better than your own stores. Sounds a bit contrary to me that then they reduce their inventories.

Speaker #4: And yeah, compared to the underperformance of the physical stores, contrary to the last many years. And then secondly, could you elaborate a bit, maybe, on the—I noticed a jump in the unaided brand awareness in the mature markets for the younger groups in the first half year in 2026.

Speaker #4: It would be nice to have some more flavor on that. And then, thirdly and lastly, could you comment a bit on the lower sell-in? I guess it's a bit contrary to me, based on the performance as a whole.

Speaker #4: So, Yoox actually, for a very long time obviously, has underperformed, but this quarter actually it's doing better than your own stores. So yeah, it sounds a bit contrary to me that then they reduced their inventories. So, happy to hear some thoughts on that.

Kristian Godiksen: Happy to hear some thoughts on that. Thank you.

Speaker #4: Thank you.

Speaker #5: So, why don't I start on the e-commerce? I mean, what do you see? I mean, we've been talking quite a lot on this call about the promo detox.

Berta de Pablos-Barbier: Why don't I start on the e-com one? What you see, we've been talking quite a lot on this call about the promo detox, and we were detoxing, of course, in the entirety of our business. We do get less offer hunting than what we get actually on the e-com. I think this is one of the biggest driver. The second question was?

Speaker #5: And we were detoxing, of course, in the entirety of our business. So we do get less offer hunting than we will get actually on the e-commerce.

Speaker #5: So, I think this is one of the biggest drivers. The second question was—

Speaker #2: The unaided brand awareness among younger audiences?

Kristian Godiksen: Unaided brand awareness-

Berta de Pablos-Barbier: Yes

Kristian Godiksen: among the younger. Yes.

Berta de Pablos-Barbier: Yes. Sorry. That's good. It's important to say is that unaided brand awareness continue to increase. Which is an important, because of course, as you know, we are moving from only reach to reach and relevance. The shift on the marketing investments that are going more to earned media, PR, et cetera, is not in detriment of our reach. We continue to increase that. What we are seeing as well is that the recent activations that we have done has drove proportionally more Gen Z consumers into our brand. We continue to be cross-generational. This is an important strength for Pandora, but it is of course important that we are relevant to the new generation.

Speaker #5: Yes, sorry. So that's good. So what is important to say is that unaided brand awareness continue to increase. So which is an important because, of course, as you know, we are moving from only rich to rich and relevant.

Speaker #5: So the shift on the marketing investments that are going more to earn media, PR, etc. is not in detriment of our reach. So we continue to increase that.

Speaker #5: What we are seeing as well is that the recent activations that we have done have driven proportionally more Gen Z consumers into our brand.

Speaker #5: So we continue to be cross-generational, and this is an important strength for Pandora. But it is, of course, important that we are relevant to the new generation.

Speaker #5: And what we've been doing in the last quarters, in the first half of the year, has actually increased the number of Gen Z consumers slightly higher than the millennials and the Gen X.

Berta de Pablos-Barbier: What we have been doing in the last quarters, in the H1 of the year, has actually increased the number of Gen Z consumers slightly higher than the Millennials and the Gen X.

Speaker #2: And on your last question, Christian, I think that's very well framed. And where we see the lower selling is on the partners that are not sitting in the lifelike base and with the way that we build up our revenue growth rate starting with like for like, then the like for like basis let's call it almost 90%, 85 to 90% of our revenue base.

Anders Boyer: On your last question, Kristian, I think that is very well framed. Indeed, where we see the lower sell-in is on the partners that are not sitting in the like-for-like base. With the way that we build up our revenue growth rate starting with like-for-like, then the like-for-like base is, let us call it almost 90%, 85% to 90% of our revenue base. Then we have the small multi-brand partners as an example, that is not counting in like-for-like, but obviously impacts our sell-in, and that is the main area where we see that drag on the sell-in and thereby the reported revenue.

Speaker #2: But then they will have the small multi-brand partners as an example. That is not counted in like-for-like, but obviously impacts our selling.

Speaker #2: And that's the main area where we see a drag on the selling and thereby the reported revenue. We have seen for a while that those partners are trailing the growth that we can generate in our own channels and in the partner concept stores, probably partly linked to the fact that we have a bigger marketing muscle that we can put behind, which helps our own channels more.

Anders Boyer: We have seen for a while that those partners are trailing the growth that we can generate in our own channels and in the partner concept stores, probably partly linked into the fact that we have a bigger marketing muscle that we can put behind that helps our own channels more. That is the link into why we see this sell-in impact.

Speaker #2: But that's the link to why we see this selling impact.

Speaker #4: Okay, that's very clear. Just one very quick follow-up, and then just on the performance and the like-for-like—sorry, on the online channel.

Kristian Godiksen: Okay, that is very clear. Just one very quick follow-up then just on the performance and like-for-like, sorry, on the online channel. What about the structural impact? Are there any there when the promotional detox is done? Should we expect online to grow faster again than physical stores, or how should we think about it?

Speaker #4: So what about the structural impact? Are there any there when the promotional detox is done? Should we expect online to grow faster than physical stores, or how should we think about it?

Speaker #2: Yeah, exactly. That's typically how we see it. The reaction online to promos is bigger than in the physical store. So, if you do more promos, you would typically see faster growth online.

Anders Boyer: Yeah, but exactly, that is typically how we see the reaction online to promos is bigger than in the physical store. If you do more promos, you would typically see faster growth online and case in point, the Q2 here, it goes the other way around as well.

Speaker #2: And, case in point, the second quarter here—it goes the other way around as well.

Speaker #4: Okay, thank you. Very clear. Thanks, Lars.

Kristian Godiksen: Okay. Thank you. Very clear. Thanks a lot.

Speaker #3: Thanks, Christian. As we have no further questions in the queue, I'll hand it back to the speakers for any closing remarks.

Bilal Aziz: Thanks, Kristian. As we have no further questions in the queue, I will hand it back to the speakers for any closing remarks.

Speaker #5: Yes. So, listen, just thank you very much for being with us today. We'd just like to remind everyone that we are not declaring victory, but we are seeing that the proof points are building.

Berta de Pablos-Barbier: Yes. Listen, just thank you very much for being with us today. We just like to remind everyone that we are not declaring victory, but we are seeing that the proof points are building, and this is just reinforcing our conviction on the direction and on the new growth model. I am looking forward to seeing you in November for our Q3 update and a more of an strategic update on all the other shifts that we are planning for Pandora. With that, just have a fantastic day.

Speaker #5: And this is just reinforcing our conviction on the direction and on the new growth model. I am looking forward to seeing you in November for our Q3 update, and a more frequent strategic update on all the other shifts that we are planning for Pandora.

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Q2 2026 Pandora AS Earnings Call

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