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U.S. Shoppers Lead Jewelry Growth

American consumers are fueling robust growth in jewelry sales, even as global markets face economic headwinds. Danish brand Pandora, which generates roughly one-third of its revenue from the U.S., reported an 8% increase in like-for-like U.S. sales in the second quarter, standing out amid weaker performance in Europe and China.

Pandora CEO Alexander Lacik described the U.S. market as “an outlier,” noting that European customers remain under pressure while China, which contributes just 1% of total revenues, continues to challenge the company due to broader consumption struggles.

Luxury Segment Mirrors U.S. Strength

Ultra-luxury brands are seeing similar trends. Richemont, owner of Cartier, posted a 17% increase in American sales for the quarter ending June 30, even as Asia Pacific demand softened. Overall U.S. jewelry sales were up 5% in the first half of 2025 compared with flat growth in the same period of 2024. July, usually a slower month for jewelry, saw sales rise 3.5%, according to analytics firm Tenoris.

William Woods, senior analyst at Bernstein, emphasized that Pandora’s U.S. success is largely brand-driven, while weaker markets in France and Germany reflect ongoing volatility in Europe’s luxury sector.

Tariff Pressures and Cost Challenges

Despite strong consumer demand, tariffs remain a major concern for jewelry companies. Pandora, which relies heavily on production in Thailand, updated its guidance to account for a 200 million Danish kroner ($31 million) tariff impact in 2025, rising to an estimated 450 million kroner in 2026. The company expects to maintain an operating profit margin of around 24% this year.

Morgan Stanley flagged potential increases to Thailand’s current 19% tariff rate as a key risk, while UBS analyst Chris Huang highlighted the brand’s heavy reliance on the U.S. market as a vulnerability.

Pandora is absorbing roughly two-thirds of these additional costs through cost optimization and pricing adjustments, with the remainder impacting this year’s projected profits. However, rising input costs—including silver, which recently hit 14-year highs, and steadily increasing gold prices—add further pressure.

Outlook and Risks

Lacik warned that even the strong U.S. consumer could be affected by the combination of tariffs, a weakening dollar, and higher raw material costs. “The impact of tariffs, not just in jewelry but in general, could change consumer behavior in the future,” he said.

Despite these headwinds, American demand continues to support Pandora and other brands, highlighting the resilience of U.S. consumers in the face of global uncertainty and rising costs.

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