Pandora, the luxury jewelry brand from Denmark, is planning to close 100 stores in China this year, doubling the previous expectation of “at least 50,” while also initiating a large-scale workforce reduction.
According to reports from mainland media, Pandora Group’s earnings announcement for the second quarter released on August 15 showed a total sales figure of 7.08 billion Danish kroner (approximately $1.1 billion), slightly lower than analysts’ predicted 7.17 billion Danish kroner. The comparable sales growth rate slowed from 6% in the previous quarter to 3%, below the expected 4%.
The financial report indicates that China’s performance is significantly lagging amid overall pressure on Pandora’s 2025 earnings. Sales in China in the first quarter of 2025 were only 96 million Danish kroner, a decrease of 11% compared to 2023. In the second quarter, comparable sales in the Chinese market plummeted by 15%.
Pandora has stated that the originally planned closure of 50 stores in China this year will be doubled to 100.
Sales representatives at Pandora confirmed to “21st Century Business Herald” that the store closure plan in China is proceeding concurrently with a layoff plan. After the closure of the store where the salesperson works, they will receive compensation and will not be reassigned to other stores.
Faced with continuous decline in both online and offline sales for years, Pandora is reportedly considering restructuring its operations in China.
Reuters cited sources familiar with the matter reporting that Pandora is in talks with local funds and e-commerce partners in China, planning to transfer all its assets in China (including existing inventory) for operation through a brand licensing agreement in the next five years.
In 2015, Pandora entered the Chinese market and subsequently expanded rapidly, opening over 240 stores in four years. In 2019, Pandora’s sales in China reached a peak of 1.97 billion Danish kroner (approximately $284 million).
However, with the continued decline in the Chinese economy and weakened market confidence leading to sluggish consumer spending, Pandora’s sales in the Chinese market have been decreasing annually since 2021, dropping from 1.126 billion Danish kroner in 2021 to 564 million Danish kroner in 2023.
In the past two years, Pandora stores in various cities such as Beijing, Qingdao, and Nanjing have experienced a shift from standalone stores shrinking to counter operations or even withdrawal.
At the same time, Pandora’s overall revenue in the global market continues to show growth, with a projected annual organic sales growth of 7% to 8% and an operating profit margin around 24%.