USA

The US buyers continue to waste jewelry, even when the winds against economics weigh on the feeling of consumers in Europe and China.

The Danish jewelry brand Pandora said that the US market, which represents a third of its general revenues, remained an atypical in the midst of weaker global sales.

“The United States continues with the trend,” said Pandora CEO, Alexander Lacik, “Europe’s European Squawk Box” of CNBC.

“A solid consumption of the United States is still interested in Pandora and, as I said, Europe is a slightly mixed bag,” he continued, noting that the European client base had been “under pressure for quite some time.”

China, which represents only 1% of Pandora’s total income, “is still challenging,” said Lacik, citing broader consumption difficulties in the country.

His company, known for their high street stores that sell popular charm bracelets and silver jewels, recorded an 8% increase in sales of the USA similarly in the second quarter.

Sales in China, on the other hand, fell 15% during the period, while those of several important European markets also decreased by the unique high digits.

Similar trends were observed in the ultra luxurious jewelry group RichemontOwner of the Cartier brand, which last month recorded a 17% leap in the sales of America in the three months until June 30, despite the most soft comparative sales in Asia Pacific.

The sales of broader American jewels were strong in the first half of the year, increasing 5% compared to a flat reading in the first half of 2024, according to the Tenoris analysis firm.

In July, generally a slow month for retail jewelry trade, sales in the country increased 3.5%, he said.

“The Pandora brand is working in the United States at this time, which has helped boost its success,” William Woods, a senior analyst and head of the delivery of European foods in Bernstein, told CNBC. He added that the weakness for Pandora in France and Germany, meanwhile, was “consistent with a volatile environment that we have seen in recent years.”

Woods cited the general strength in the US market today, but nevertheless pointed out a varied image of retailers, some of whom have reduced their prospects for the whole year about tariff concerns.

Tariffs remain a key challenge for jewelry brands, even for Pandora, which depends largely on manufacturing in Thailand.

The company updated on Friday its tariff orientation to predict a blow of 200 million Danish Kroner ($ 31 million) in 2025, followed by a Danish Kroner’s coup next year. Prognosis an operating profit margin of around 24% this year.

Outlook explains rates of rates as they are currently, with Morgan Stanley in a Friday note marking a potential increase in the current 19% Thailand rate as a key risk to the company. Meanwhile, UBS luxury analyst Chris Huang cited external taxes and an “excessive dependence on the United States” as potential challenges.

Pandora’s actions fell more than 14% on Friday morning after launching the results of the second quarter.

The CEO Lacik said that his company was currently absorbing two thirds of the additional incurrences, even by way of optimization of costs and price adjustments, while the rest will be born in the estimated margin of operational profits of this year.

However, he recognized tariffs as a new wind against which he could undermine the current force of the US consumer and the demand for jewelry, along with the highest costs of inputs. La Plata, key to the production of Pandora, reached the maximum of 14 years last month, while traditionally safe gold prices have continued to rise this year.

“[The U.S. consumer] It can change in the future, who knows, with the impact of tariffs, not only on jewels but in general, “Lacik said.

“We have a weakening dollar, we have an increase in silver prices, and then the cream at the top are rates in the United States,” he added.